@Sachin ReliaI know they just launched a new reit 2, in their last reit they have yet to submit their audited financials from 2022 (due by April 30th) or their semi annual report for 2023 (due by September 30th)They also have switched auditing firms in this new venture….I would ask them the status of the above.

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.

Options vary by state, particular properties/locations, products within particular carriers, etc.It's really important to talk to an agent/agency that is impartial and looks out for you.

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.