If they have delinquent status on medical bills over $20K, that is a red flag.

Your CPA is right- the exemption is based on filing status when the house is sold. 

What you describe (fly out, check out properties, manage renovations, be involved in the process, etc..) isn't exactly turnkey - that sounds more like regular buying, rehabbing, and then running.Turnkey is when you buy with tenant in place, or the property is move in ready and/or a tenant is scheduled to move in.Many people have success with turnkey - but typically the only aspect that is actually "turnkey" is the status of the property and lease at the moment that you purchase. 

Where do we ask about the added in fifth unit legality and new commercial status and implications?

Where do we ask about the added in fifth unit legality and new commercial status and implications?

What city service do we need to talk to about the additional fifth unit legality and new commercial status implications?

Every market is different but if you get solid reviews and are the same price as other rentals, earn Superhost status, and have good pictures you won’t go wrong. :)

Depreciation, carry over losses, personal status -did you work enough to be classified as a professional, income limits for Ira contributions, passive and earned income, deductions, etc. the tax law was not really simplified much with the last change.I surely don’t like paying for erroneous advice—as @Matt Hoyt suggested look for another CPA

The house was in a pre-foreclosure status because of this.

Like @Stephanie Irto said they are all super local.Common characteristics are a higher rate ("free" money isn't free), income limits, and FTHB status.