I do not know if this is realistic or farfetched.Thank you While we talk about returns, one of the ways to gather whether your investment may yield successful results is to ask the sponsor if they will provide audited financials from their prior offerings?

If you get audited good luckNot a cpa or tax professional just telling you what has been relayed to me by several CPA’s

The first step is to schedule an audit with RISE, (riseengineering.com) which is free for MF homes.

My CPA said in the event of an audit it would be difficult to justify that 50% of my activity isn't coming from that business that produces significantly more income even if I can meet the 750 hour rule.

Its a headache since some to most policies will audit you every year. 

- assuming 500hrs each, we have spent enough time this year to get to that but wondering if thats a red flag for IRS with high chance of getting audited (we travelled 7 times over the past year to work on the unit and spend at least a week each time excluding the time we spent managing the guests)- Lastly, our understanding is that each can take 50% of the final offset to our W2 assuming we prove material participation eligibility. 

Peer Street struggled with Underwriting, collecting payments, and the math that an accounting firm calls audited while from the outside everything looked pretty. 

(they are open to increasing this limit but not without an audit of your infrastructure) . 

If you have some sort of a print out from your own bookkeeping and your closing statement from when you bought it if it was in the past year, or last years tax return if you claimed it last year for the duplex it would be really simple for them to add it onto this years return and your whole return would likely be like $500 and would be covered by their audit guarantee.

from what i see you have to spend a certain amount of time per year in the bizz and i mean really in the bizz.. this is probably an audit trigger as well.. so if you get audited you need very detailed supporting documentation.the Advantages of course are for the many write offs that being in the business affords us.acquiring a RE license and actively work in the industry usually is the easiest and safest way to claim these write offs.