Per auditors website, 926 living sq feet. 

For example, we have a leveraged note fund and both our accountant and auditor have given us the opinion that it only creates interest income as reported on the K-1 and which does not create UDFI (or UBIT).

I’ve talked with the county auditor, probate officer, attorney, etc.

@chris connolly first year I did the taxes with a rental, turbo tax sent me in the wrong direction (because I answered a question incorrectly) and I ended up filing a schedule E and schedule C,  giving me double the deductions, (I thought wow I am really getting a tax break with this rental) ended up owing what I should never have gotten in the first place, but I hope to never have to face a tax auditor again.

Like @Daniel Hyman said, the easier you make it on a hypothetical future auditor with the most detailed records possible, the better.

According to the county auditors site the surrounding properties have appraised for anywhere between 80k to 100k.

Bank reconciliations, LOL, putting the steps of a reconciliation is a trick question stating it in English for accountants, was an entry test question to write out in essay form for government auditors and examiners.

Of course i would like to expense it but I don't want to draw unnecessary attention from auditors.

The audited financial statements don't need to come from a PCAOB auditor.  

The thresholds are estimated a number of ways (Example 10% of annual revenue or whatever the partner considers "material") and any variances beneath the threshold would not be considered material and thus not represented in the financial statement In addition, HOA's are usually smaller clients for accounting firms, I don't think they have enough sway to make the auditors misrepresent the financial statement