OK then you don't get a low rate Conventional Loan (and you risk an Audit;-(

W/o auditing the books, it doesn't feel like a good deal to me.

While we have systems in place that always audit these things, it happens from time to time.  

CPA merely audits the receipts and transpose my spread sheet (on a thumb drive) to 1040 and make final calculation adjustment based on other income....Sam Shueh

I was sitting at Starbucks finishing up a proposal for a really important prospect (online advertising audit for a Fortune 500 company). 

One warning, though ... even though this strategy is 100% legitimate, take extra care to keep meticulous records, since checking the magic "real estate professional" box on your tax returns will dramatically increase your risk of getting audited, but this risk is worth it and if you keep good records and take only legitimate deductions, it should be no problemo.

When you have a CPA/Account do your taxes, it lowers the chances of you being audited.  

Just understand that while compelling logic and common sense are needed from you to justify out of the norm things when audited.  

If you look on the IRS webpage, it shows you can audit a laundromat by measuring the water usage.

They audit me by sending a form every year seeking a copy of my driver’s license and a utility bill that goes to my address.