The bottom line is this: if you get audited and present this article to the IRS as to why you did what you did - it will have no significant whatsoever.

The cost is 3k and they will back you up if you get audited.  

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.)...

Asking for a full audit for raises over $500k will make it unworkable for real estate crowdfunding most likely unless there are accountants willing to sign up for a lot of risk for very little money.  

I tell the sellers if you want a higher price you MUST have pristine records that are audited.

Shouldn't the due diligence period be spent on going through the lease agreements, auditing the rent roll, fine tuning the negotiations etc.

Joe is definitely on the move and probably has some wisdom to impart, i would shoot him a linkedin invite and see what he says.

With REO sales, they tend to not be flexible on the price because of certain regulations and audits they have to go through.  

Your personal credit card statement is the audit trail for your additional contribution to your capital account on you books of the business and is evidence of the expenditure for audit purposes.