Many people like to do a lease audit with estoppel certificates.

His QI is telling him the escrow would also be considered money received at closing but falls in a gray area if audited. 

I work full-time as a CPA audit manager at a Big 4 public accounting firm, and in my free time I would love to help and learn from an experienced investor with strategies similar to what I’m interested in (appreciation, single family (potential multi family), mid-term rental (potential short-term)).Open to any advice as well on how to make my first leap into actual investing!

Account Closed, just let her know that the state will be coming in to do an audit of her files to get that information if she isn't able to sign that.

If I don't need to report, I heard I may get audited at the year of sale.

Thank you,BradIt is very difficult to qualify as a rep without managing your own portfolio .You may find someone to do it(cpa) but it's a good way to get audited. 

Heck, my CPA and I regularly discuss and are forced to make our own assumptions on how the IRS may interpret something in our real estate taxes, if we were to get audited.

I used a basic DIY segregation study with an IRS audit guarantee.

If they don’t, it could raise a flag for an audit.  

If it’s illegal activity that’s one thing, but if the sponsor has a recent poor track record - who is to confirm that or verify it without having it third party independently audited - same goes for those good sponsors.