Some of my concerns include: No third party oversight of the underwriting process—REITs have equity analysts, quarterly audits and SEC regulation.

I'm a bit biased b/c of my day job of doing energy audits and solar panels.

Sounds like you may have bookkeeping skills but you're not an accountant with auditing abilities. 

But you've apparently audited your financials and know something is wrong, there are all kinds of 'rules of thumb' that are used on BP, but the real thing you need to do is make sure your investments are meeting your financial goals!  

And, be careful about having a bed in there too...ie, don't use the guest room as your home office unless you can remove the bed before the auditor shows up at your door--they never do surprise audits.  

Audited books etc etc.Best to talk to local REIA members about Joint Venture deals.  

Should all non-bank mortgage servicers be required to have a full financial statement audit conducted by an independent certified public accountant?

(shoot for the moon land on the trees, shoot for the stars and land on the moon, or something like that)Background - Accountant (Audit and Tax), Asst. 

While I doubt you would get audited or anything. technically you shouldn't co-mingle funds.Income from the business goes into a business acct, and bills from the business get paid from the business acct.

In the future, I will probably set up an LLC and use that to hold these, which would reduce the audit risk (even though it is the same business and form over substance) and then elect S corp taxation so not all of it will be passed through as social security/Medicare wages.