This is the most effective and impartial way to get a solid ARV number.

The common theme I am being told when negotiating with a bank's senior management is that this request stems from bank regulators and audits. 

.- But by contrast if you spend 75 person-hours checking your books and present a professionally audited P&L that voluntarily discloses a temporary $150/mo decline in income due to a strategic re-positioning of your business that makes all the sense in the world... now and only now, will we take your numbers at face value, ding your income $150/mo, and throw out what your tax returns show in favor of your YTD P&L numbers.Yup, the mortgage industry is currently pretty stupid.

Should I also anticipate any kind of penalty or additional audit? 

Also, I am sure there are folks wholesaling in PA - are they using the above-mentioned method to avoid paying double transfer tax or are they using the "usual" contracts and just using a title company that won't charge double transfer tax (the latter being the riskier option, from an audit standpoint). 

You can use your personal space for the address on the LLC just be cautious I have a good friend put that down and the following year he got audited.

Is it worth increasing your audit risk?

My real estate experience consists of auditing and working in the affordable housing sector. 

We don't advertise to clients that they should do any of these things, but the reality is that something of that nature is unlikely to create an audit issue, unless you have a frequent habit of doing so, a significant set of expenditures at the hardware store and no documented labor to install those materials.That said, one should absolutely stay away from any work on an IRA property such as painting, landscaping, serious remodel work, etc.  

We use the standard contract, I personally think that it is worthwhile to have a contract that both the realtors are familiar with and I would presume that it would have the most impartial terms.If someone sent me a non standard contract, I would counter on standard paper so I didnt have to figure out how the other party was being advantaged with their contract.But that is just me.