Yes, it is time consuming; and yes, you do take a risk of your application being turned down; but there are many steps you can take ahead of time to help ensure success.FIRST, before you even consider writing a grant, make sure you have on file the kinds of documents you'll need for most grant submissions: Mission statementBy-laws and articles of incorporationOrganizational chartOrganizational historyAudit or, if an audit is not required, a financial statementFavorable newspaper articles about your organizations, and other PR materialsSufficient copier paper, FedEx packages, binders, dividers, etc.Having these at the ready will make the writing process go much easier.SECOND, after you've done your homework and isolated a funding source to which you want to apply, READ THE APPLICATION CAREFULLY.

As an investor, I don't feel like I should have to 'babysit' the property manager and constantly audit statements.

Without being able to perform a pretty comprehensive audit on your lender, you would not be able to know.

The IRS does not state that a taxpayer must hold for a certain timeframe but with that being said if you hold the property for 24 months, you straddle three tax years and should easily be able to prove your intent, under audit.

That is an area where the IRS likes to focus for audits. 

Steve,Do you see a trend of the ones that get audited by the IRS?

Most can't audit a HUD-1.

If you get audited does the tax attorney have attorney client privacy disclosure on discussions you have had versus a CPA??

Jon Klaus,I am seeing many more audits in this topic from last year.

There's no way to audit that quickly if it's fraudulent.