That could helpful just to do your taxes and have records for an audit...sounds like the details for documenting could be better....Liability wise and for employee taxation issues, you can find some rules both the irs uses (search employee versus independent contractor on the IRS site) and your states outline of the distinction related to liability will probably be similar but may also focus on factors like whether you are controlling the means or just the ends (telling them the outcome is okay but not the exact means)...are you a client/customer or supervisor here?

How to audit information that sellers lie about, Realtors mistakenly provide and Bankers overlook.

If you are the only client, you are an employer.Now if you are not worried about an audit then I would be concerned with what type of work they are going to be doing?

Then I would wait for my audit notice(would be my 3rd) win the audit and then write my 3rd book " How I beat the IRS at their own game"" Damn Lenders.

In my personal opinion, 24 months is a very conservative hold time because it straddles three tax years and if audited, you can clearly show your intent to hold.

JV agreements with LLCs gives the best protection and helps keep your books separated in case of an audit. 

Figure this:20% of the purchase price2% of total loan amountAnywhere from 1200 - 1500 hard closing costsFigure 800 for the appraisal and then the CDA (which is the in-house audit of the appraisal)Figure you'll make 3 - 6 debt payments while the work is being done. 

Got all records from management company and after careful audit, actual expenses: 52.4%!

In the meantime I've been utilizing any opportunity to learn about real estate, from working as an intern auditing apartment complexes to working as a leasing specialist learning how property management companies operate to make it a lot easier on me when I begin investing.

There doesn't appear to be an audit down the road after closing to make certain you are in compliance.