You get the benefits of an audit trail and financial reports without all the extra stuff you don't need in quickbooks.

Some of the additional benefits include:Reduction in current tax liability Insurance savingsImmediate increase in cash flowMinimization of recapture upon sale of the assetIdentifying disposition expensesIdentifying repair and maintenance expensesEnergy cost savingsConstruction tax planningPreservation tax credits (historical and new market)Fixed asset reviewDEIRA Reports (reduces insurance premiums, benchmarking reports, energy audits and reserve studies)Depending on the state in which you own the property, you may also qualify for state taxdeductions or credits which can be identified with a thorough cost segregationstudy.Real Estate is such a unique type of investment and pairing it with cost segregation makes it even more unique.

After auditing tenant files for people that were evicted, we discovered she needed to improve her tenant qualification skills.

say you buy a used $150 stove from some random person on craigslist/offerup or hire a handyman for a $200 and they are taking cash only... is a ad hoc bill of sale enough documentation for these expense write offs to hold up against an IRS audit?

When I first got started investing I audited an Accounting 101 course at a local community college and it was invaluable.

I worked at a Big 4 accounting firm performing public and private financial statement audits for over 4 years and currently work an auditing job.           

After auditing tenant files for people that were evicted, we discovered she needed to improve her tenant qualification skills.

If ever the mortgage company wants to perform an audit they can call the note.

I think it goes to show when you don't get audited, you can "do anything" and call it "legit."

Some closing companies will interpret the law differently than others, then then refer back to possibly being audited and they don’t want ANY grey area in their closing process and will refuse to double close without each closing acting separately.Outside of North Carolina, Illinois is also another state where I see wholesalers using Transactional Funding for their Double Closings due to a “Brokering without a license” law.Let us take Illinois for an example.