Using "Stadnard 80/20" won't hold up in any type of IRS Audit or examination. 

@Bridget Poston. 1) search in BP for anything in Marietta, set up key word alerts for Marietta and Ohio2) Marietta isn’t that big and most mulitfamily properties for house hacking are probably near the city core, search online and on county auditor website for multi families and rentals, drive and walk the area, look for rental signs and call them, identify multifamily property addresses and research them, network with owners

She is still listed as the owner on the county auditor website.

I'm not sure what you mean by auditor exactly, whether you are talking appraisal or assessment.

By doing this, there is no real estate transaction recorded, therefore no market value transaction that an auditor can base their value on.

The theme in the other post can be summarized by this quote in one of the posts of the other topic: "The auditor basically told me that anyone that is claim passive rental income losses above the 25k limit is being audited."

Ken,I can't find either of these homes on the auditors site, so it hard to say what kind of deals they are.

Will it show up in the county auditor's records how many bedrooms/bathrooms it has after I converted the house?

She would have to show more than she spends on her part time job, or 750, whichever is more.Long ago I recall reading an IRS audit guideline document that gave instructions to their auditors for this issue.

I work 11-7 as a night auditor at HAMPTON!!!