The way I interpret MN law also is that application fees are refundable if the applicant qualifies but you accept another qualified applicant if processing multiple applications at once.

Ignoring the valuation question, which is determined according to "highest and best use", which by itself is open to broad interpretation, the majority of these syndications I have seen violate the partnership anti-abuse rules under Treasury Reg Sec 1.701-2 and the substantial economic effect rules of IRC Sec 704(b) and the related regs.The strong majority of these (but not all) dealing with "investors" are nothing more than thinly veiled attempts to sell tax deductions, and the Service and tax courts are quite clear on where they stand on that.According to your profile you're a CPA too. 

However, I use the skills regularly in sales, communication,writing and interpreting contracts.

Thanks Wayne, so I'm interpreting this as 1.

If I'm interpreting the rules right, any eligible 1-4 unit property can add one unit.

Originally posted by @Veronica Ivy:When you file the election to be treated as a Real Estate Professional, you report your rental income on Schedule C NOT Schedule E, because it's active income now, not passive.Veronica, is this your personal interpretation?

It was a heated debate with no consensus:    https://www.biggerpockets.com/...What's the interpretation of the codes/regulations today?

No one here is a real estate attorney and shouldn't be interpreting law.

What are the different interpretations you are finding that aren't clear?

If you happen to interpret all the questions correctly and provide accurate answers, then the software will crunch your numbers and produce an accurate tax return.