- I realize that this maneuver will likely increase the risk of audit....curious to get a sense of how much more risk of audit I will face and does the IRS typically just audit the one year or would they dig into previous years as well?

They would have audit, exam and compliance issues with having a foreclosed junior, and successor non-obligor behind them.

@Michael Smythe I had an owner that we allowed to use our software as they were more interested in running the units themselves.

Are you using a property management software?

Pace's "community" will get you into trouble if you ever get audited/sued.

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Can you please tell us what software you use for this?

It's a free property management software and it has been working well for us.

We are already starting to make significant investments in our team and are currently in the process of filling multiple software engineer positions so we can knock out our software roadmap faster than ever. 

When using tax software, if I enter 0 rental days for the property, I'm asked, "Did you try to rent the property to others at all during 2023?"