What brought me to this sight was the topic of Grant Cardone.. how his business models deferred new investors with no money down techniques.

If the initial funds are real concern, it might be worth considering structuring the distributions in such a way that he or she recuperates the initial investment first.

. ;-) Also, I think the market is changing (I know a lot of people don't agree with me and that is fine) and those techniques are ideal when the market changes, I always react "contrarian" to the market and I've made a lot of money doing so.I don't think that it is that people don't agree with you - it is that we don't believe you. 

I need some assistance in determining if I can invoke the "first time homebuyer" qualified distribution and what my tax/penalty consequences will be.

It is easier for quarterly so you may see that more often as an investor.My comment:  Investors love monthly distributions and in coincides well w/our monthly quick update on the projects progress.

For example, if, in an 18 hour waking period, you spend 2 hours snooping through the AirBNB, writing down the makes and models of appliances, figuring out the distribution of the mini shampoos and inventorying how many cooking supplies your hosts are providing and the thread count of the sheets, then an auditor might allow you to take 10% of your total trip expenses as a deduction.If, however, in an 18 hour waking period, you spend 6-8 hours per day interviewing Hosts, researching which properties would make good AirBNBs, researching the local laws, touring properties, meeting with an agent and vigorously pursuing your next acquisition, you'd have a MUCH better case for writing off your travel expenses (but probably not your lift tickets and equipment rental).If, on the other hand, you are traveling and on vacation and just hang out in your AirBNB without actually performing any activities, then the odds that an auditor will allow any deduction at all is pretty minimal.In any audit, it would be up to you to document the business purpose of your trip.  

It's been a great technique.

read - I like REAL ESTATE EXCHANGES & ACQUISITION TECHNIQUES by Wm.

For buy and hold deals, the distributions are sent either monthly or quarterly.

I've spent the last year or so researching different techniques of real estate investing and I believe I've settled in on the best strategy for me!