Also, I know this status can sometimes trigger an audit.

It would be tough to make the case that you work more hours than your property manager, which is my best guess (for someone who is not a tax professional) as to what triggered the audit. 

I've been searching properties for a variety of ideas for almost two years now and never pulled the trigger.  

I think the question is whether you want to look like a threat to the police and other trigger happy wannabe vigilantes (yes, could be one of your tenants).

That being said life isn't black and white if its keeping you up at night don't do it but I think you will be surprised at how easy and not scary it is once you pull the trigger.

For example; young professional may trigger higher demand for smaller units.

I'm just exploring, gaining knowledge and conducting research before I pull the trigger on anything.

Depreciation recapture is triggered when a property is sold, requiring the investor to pay taxes on the portion of gain attributed to previously claimed depreciation deductions.

With a land trust, the legal ownership remains with the trust, helping to avoid triggering the DOS clause when transferring beneficial interest rather than title.

Depending on the lender, you can/should tell them upfront so they can document the LLC in the file so you are sure not to have a due upon sale clause triggered when/if you do transfer into your LLC. #2.