I also would like to reduce the audit risk due to large bonus depreciation. 

Obviously, the at least 42 input variables can be adjusted to your own risk tolerance, but this is far easier/quicker than to re-create the entire input.You can find the link on my profile page.

Investing in single-family residence fix-and-flip projects in New York involves purchasing distressed or undervalued single-family homes, renovating them, and selling them at a profit.

This one was strange because I ended up splitting the companies and partners involved in the deal so we liquidated halfway through the project. 

What paperwork needs to be involved if IRS asks?

The bottom line for us is that the financial benefits associated with the deal must far outweigh the risks.  

Absent them, risk is controllable over time.

Your credit at risk and might affect your ability to buy a home in the future. 

Quote from @Michael Challenger: I have no qualms with hard money lending, but I need to learn more about the process and structure to these for typical deals so that I am more comfortable and in a position to reduce my personal risk and risk to investors as much as possible.

Investing in single-family residence fix-and-flip projects in New York involves purchasing distressed or undervalued single-family homes, renovating them, and selling them at a profit.