If audited how can you prove your intention was to rent it? 

SEC regs state regs.. yearly audits .. financial reporting to investors.. investor relations etc etc.. ... and as much as anything.. if they don't work..

Impound accounts are audited annually, and if it's over-funded you get a refund check.

Have you run into a situation yet where a company you are auditing has gone paperless?  

@Joe Splitrock  The IRS would not know unless they audited you. 

Guess if you don’t have enough volume, there’s a less chance of audit.

Moreover, if you go to an audit, you don't even have the documentation to justify writing off those expenses, given you don't get any kind of invoice from either of them.

A Tax Audit is not fun, and even if you have to pay a small penalty, it will bring the blood pressure up.  

Current rents: you can glean this information through online sources as well as old-school searching (walk-ins, calling the buildings)Talk to local brokers to get the inside scoopMarket analysisCheck to see if building is in a flood plainYou can ask for, but these items are usually provided after signing a contract: Leases for lease auditing against bank statements, tax returns and leases (usually not provided before a contract has been signed).Tenant payment historyViolations, delinquenciesLease addendum and/or other agreementsTax ReturnsBank StatementsUtility billsCan RUBS be implemented (some municipalities may not allow it)Service contractsReserve fundsEnvironmental assessmentEmployee recordsStructural issues including foundationEmployee historyOther value-add features that can be added include:Trash valetCar portsStorageDog parksTo be honest, a similar level of due diligence is required across multifamily and manufactured housing (mobile home parks).Best of luck!

In hearing the requirement for the HUD FHA, I don't think that's a loan we would be interested in looking at given the higher reserves, requirement for audits and necessary approvals on distributions from the ownership entity.