I used to be Managing Broker of 1150 agents and audited all the files and let me tell you, we are NOT all created equal!!!

For most people in 1 property an LLC is not totally necessary, especially because you will be living on the property it may actually get you audited, because the IRS does not want people taking business deductions on their primary residences.

I audited many different types of companies, banks, hospitals, a restaurant group, a timber management organization, manufacturers, etc.

The audit results are only sent to the tenant (Since tenant pays utilities) My question is this: After the audit, can the tenant hold that audit results against me to leverage new window installation, or somethiing major?

That's where they nailed me in my audit yet it was fully documented.

You would need to be able to prove or demonstrate that you have the intent to hold for rental or investment purposes should you be audited.

ONe seller wanted a full audited financial statement .. the other ( house I finally bought was good with a POF of cash in bank and normal credit.)...

In Maryland it is one of the things they target in audits of our records and it results in a $10,000 fine if you did one without it veing disclosed (and agreed to in our listing agreements)Interestingly enough, most agents, including many big time veterans, have no clue what a variable rate commission is until they get fined for doing it and not disclosing it.

Worked in Real Estate audit for a Mid Size firm, but now have my own boutique tax and accounting practice as well as a job in finance company.

You and your agent should set the expectations upfront that the contractor needs to provide a video walk around along with a report from “audit trail” (It is a $10 app on the IOS store) at the end of each week.