I mostly work in financial statement audits but am very familiar with the tax treatment of various real estate investments.

Currently I perform energy audits and make recommendations to homeowners and landlords for energy efficient improvements.My hope is to learn as much as I can in real estate and in a 5-10 yr time turn it in to a full time business that can provide me a career on my own terms and do one of the things I love which is to look at properties.

I found one firm doing audits then buying the discounted note and arranging for the homeowner to lease option it back.

If it is not - it can be a potential audit flag.

Without active income just looking talking writing off expenses is often subject to be audited by IRS.

Also increasing the value, building equity- I am looking into the mass save program and now need account numbers so they can go in each individual unit to complete the energy audit. 

This would never pass through any kind of audit and an IRS agent may consider this fraud as it essentially attempts to take personal expenses (such as for personal use of utilities, depreciation, repairs, etc) and make them rental deductions.Don't do this.

My tax audit work has me travelling quite a bit outside of tax season which is wonderful.

My business was audited by the state for this exact issue and we had to show proof we had paid taxes, even if the vendor didn't charge it.

In my experience they rarely audit you.