@David M.The better managed funds will have audited financial statements and typically also submit semi annual or quarterly reports.Those that go regulation a+ also have to submit to the sec so their information is all public.Like anything, some private are better than public and vice versa, really comes down to the sponsor/CEO and the team in the majority of instances.

I'd stay put and I hope this works out for you @Solomon Rosenberg public REIT investment is still way better than private syndication, because of public transparency and the financial progress is getting audited.

assuming work completes after closing.In the event of an audit, is it a red flag if we claim an "improvement" after the closing date occurred?   

KBKG was the first company ever to launch a self service software for properties this small and it has been through IRS audit numerous times.

What caught my ear was audits and W2.So, my approach would be to have a back up if your CPA/Enrolled Agent or Attorney says it's okay to do as you've laid out.

It is required if the IRS audits you later on.

Also, your state has the right to audit your LLC to verify you are running it correctly - this happened to one of my colleagues recently.  

As far as I know neither of these are a necessarily deal breakers but just means we need to have really good logs to back this up in case of an audit.4) I have a management company handling the scheduling of guests, cleanings after guest leaves, and check-in/check-out duties.

what should the audit include and would they share it? 

I’m sure audit rate on this has to be astronomical and just need good records?