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.

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.

if you get audited (god forbid).. you will have a professional in your corner to assist and argue on your behalf.

The thing that may be new, at least I didn't see it as I scanned this thread, is that they 'audit' your use of the the service periodically. 

If they don't match, that's a flag for a potential audit. 

HUD loans are not cheap as there are many fees involved (replacement reserve is .6% of the total improvement costs, HUD application fee which is .3% of the loan amount, market study, phase 1, HUD inspection fee, annual audit, etc).

That means requiring audited financials.

J Scott,Couple items in this thread that I will hit upon. 1st, aged entities is a red flag for an audit and trouble down the road.

While you might get away with paying capital gains, it may also increase your risk of audit, which may not be worth the trade-off.Again, I'm NOT a tax professional, so get professional verification of everything I'm saying before you listen to me

Educating yourself and gaining knowledge and information on 2 foreclosure Defense tools: Securitization Audit and Forensic Audit.