Background checks are de rigueur today; anyone that has tried to rent property in at least the last 5 years knows that everyone (reputable) requires credit and background checks.

Barely noticed and occupancy was 90%+ Look up Village of 5 points in Lewes, DE, tons of development, all occupied

@Robert HastingsAssuming taxpayer has a de minimis election in place, the expense is below de minimis threshold, and the consultant fees don't show up on the closing statement, which I'm sure they don't, taxpayer would expense the fees via Treasury Reg §1.263(a)-1(f)(3)(i).If not then the question becomes: is this investigatory cost "inherently facilitative" under Treasury Reg §1.263(a)-2(f)(2)(ii)? 

One of my goals is to purchase one of these villages that is on or near the Camino de Santiago and either renovate or build from scratch a youth hostel (albergue juvenil).

After all these years it still sticks in your craw.When we 'sold' our CO house, it was on a lease option to our cul-de-sac neighbor. 

Originally posted by @Jonas De Hovre:Thomas that sounds like a really good deal! 

I will add that you may want to have a WY or DE or Nv LLC that owns that GA LLC as an extra layer.

the crowd funding space as you know was soup de jour for a while..

I have seen a lot of BP posts in recent years where investors are capitalizing and depreciating deductible costs under the $2,500 de minimis safe harbor.

According to the interpretation of some CPA'S the de minimus rule applies to real estate investors.