The downside is that you are likely to have to deal with regulations, MLS fees, paperwork, trust accounts, audits by the State, etc.Unless you are planning to scale up rather quickly, just working as an agent under a broker might be the easiest thing to do, plus you will learn a few things from them.

The next time there is ever any re-determination of intent is upon audit when you will be subjected to the opinion of one person - the field agent handling your return.  

If you get audited, you would have to be able to demonstrate that you had the intent to buy and hold for investment and not buy, rehab and sell/flip. 

Its my understanding some lenders actually audit their portfolios periodically to check for changes in the chain of title.2) How can I avoid cancellation of the title insurance coverage policy when using a quit claim deed?

This is a strong audit topic for the IRS.If you are having a management company handle the property, you are not going to be materially participating.From the IRS audit manual: A trade or businesses is a passive activity if the taxpayer does not materially participate.

I did an internal audit on this discount one year to track if the savings were worth the effort, we had a median savings of 43%, so yes, it was very worth it.

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.  

You would have to be able to demonstrate your intent should you get audited.

Check out the audit section.

There are some very good schools there.While I'm guessing these are audited courses without credit hours, students receive a certificate of completion.Too bad, I searched RE and nothing popped up.