Will the IRS waive penalties to avoid litigation of something this grey?

I feel that this may avoid a lot of the sticking points that banks have with first-time commercial real estate owners.

I'm open to any market but would prefer to avoid Texas as I hate their outrageous property taxes and would prefer not to send them any more of my money.

Things to avoid.

Also, you'll avoid potential disagreements that could become huge headaches.If you're looking for the partner to contribute additional value besides money, like guidance/advice, help with the rehab, etc., then I understand partnering. 

I plan to avoid anything rural. 

- I understand estate taxes will come into play once I "pass on" my portfolioC-Corp- Can avoid the 30% tax witholding for NR aliens- Possible double taxation when taking money out of the company through dividends/salary- Shielded from estate taxesI'd love to consult with someone that could talk me through the advantages and disadvantages of each and help me set up the appropriate structure given my situation.

(Tryon to avoid borrowing on my first deal) Just curious what others may do in this situation. 

There are some cities i love to invest in and others i avoid completely....

Are there any you would or suggest to avoid?