As I stated in the post above I have my B.A. in Accounting and Finance, CPA eligible, Took audit and got a 70.... twice. now the option is to become a real estate agent to become a better investor because I would be working in the field etc. or focus all my time and energy passing the exams and working with a CPA firm. 

For example:- building 1: Me, Partner 1, Partner 2- building 2: Me, Partner 2, Partner 3- building 3: Me, Partner 2, Partner 4etc.By keeping everything completely separate, audit trails can easily be set up and the integredy of the Accounts are maintained.Each Building Partner can have read only access to the Accounts so they can monitor it for excessive expenses, fraud, etc.In fact, this helps build confidence in me as the manager for the Buildings amoung all 10 of my Partners.Is it difficult?

The developer I worked for had several properties fall into default based on the annual compliance reviews which could include maintaining DCR, rental occupancy levels, reserves, including auditing your own balance sheets, as these are just a few areas they hit on (obviously depending on loan) assuming apts.

There are lots of people who have done all kinds of things and been fine, it's just because they haven't been caught or audited yet.Seek the guidance of a tax professional before doing anything (or at least educate yourself as best you can).  

It will be a tough explanation for a field agent if ever audited. 

Put clause you will have quarterly audit.

It still has not happened, and very, very few of the many thousands of clients we have established have been audited. 

Yes, that's what I was saying, the loan will be more likely to be audited after a modification, wait a couple years to mess with deeds, IMO, but even then, yes, the due on sale clause is real.

Not much different then Sched E on a 1040, except 1/3 the audit foot print in the 1065. 

If you have some sort of a print out from your own bookkeeping and your closing statement from when you bought it if it was in the past year, or last years tax return if you claimed it last year for the duplex it would be really simple for them to add it onto this years return and your whole return would likely be like $500 and would be covered by their audit guarantee.