Next, you must keep records of repairs that indicate odometer readings as in an audit the IRS WILL ask for them.If you have a home office, the rules are strict.

I immediately stopped investing the retirement funds and basically asked the IRS to "audit" exactly what I was doing to determine if it was legal; basically, if you initiate the audit and it turns out you did something wrong, the IRS will tend to be a lot more lenient than if they initiated the audit at a later date.

Schedule a house showing or two, contact an attorney, document some RE work stuff and that will help if your audited.

Your question seems to be asking how they would know because you want to follow that approach, which makes me pause....Since the bank is a loss payee on the hazard policy, yes, they will notice.They also notice names on tax bills being paid.They notice if there is an insured loss to the property.They may also notice someone else is paying the loan.They also audit loans, and bank examiners audit loans and occupancy can be verified easily.

Those that simply "pop" will have the same issues to renew.And, most banks will be asking for current financials as they are required for audits.

If your background is unrelated to business, business development, management, etc. it may pay for you to go audit some courses at your local community college.

If each unit has a washer/dryer connection, they could be doing laundry for their entire extended family and friends.You then need to have someone perform an audit of the fixtures.

He works on anything held in the 401K(s) & I just 'advise' but I pay for all work/materials from the 401K.As per my recent IRS Audit I did show that the properties were purchased & renovated using an arms length 1099 contractor.

Austin does require you to pass an energy audit in order to get your certificate of occupancy but those standards may not meet the same federal guidelines.Here is the key text from the pdf:50% energy efficient standard.

Better chance for IRS to try and classify you as a dealer which you don't want.Also, LLC partnerships statistically are audited much less.