Bottomline is FHA does do door knock audits to confirm you a re living in the home and if you aren't they will call the loan immediately.

The value will purposely be biased low (but not ridiculously low to flag an audit), which MIL will be fully aware of, and we will all agree to it.- MIL gifts shares to my husband, myself, and our daughter up to the max value of $13K each, this year and 2013.

Ask them for audited financials from prior deals...

They audit like crazy making sure you have separate accounts when needed, no commingling of funds, etc. 

Those who claim to buy with hard cash....well it would be interesting to see the audit trail for the settlement....yes, cash is legal tender, but it's a real PITA to do it legally and in compliance with accounting requirements.

Are they able to provide audited financial statements for the property? 

If you have not placed the property up for sale and the offer was unsolicited and financially makes sense, then you may be able to prove (if audited) that you did have the intent to hold for a longer period of time.

I have had several financial instiutions tell me that I have purchase this on a residential loan (30 year mortgage) and then transfer it to a LLC, if the loan gets audited when they sell it to the secondary market, it could breach the Fannie and Freddie guidelines and force the total payment of the loan at that time. 

Is it audited, who is the auditor (if the auditor is working on crypto project too, run away LOL). 

(CRMC).These are companies that have been audited by the National Association of Residential Property Managers and have demonstrated a high standard for both procedures and customer service.Again, I believe the best way to find a good property manager is to seek a property manager out and has invested in advanced training and education and has attained designations, usually they also have years of experience.