The funny part is the reason I went with this CPA versus the others that fellow investors recommended is they said their CPA was too expensive for someone like me with just a duplex, yet I was billed nearly the same amount that these investors claimed they paid. 

Welcome to the party @Steven Brito glad to have you aboard!

Please do not comment on the legal aspects of it since both parties are already working with their attorneys.Property: Fourplex flat (two 3-bedroom 1-bath, and two 2-bedroom 1-bath with fireplace)Condition: Average, no major repairs expected.

Clear trail is the tricky part...I am always worried that if I get audited the IRS will find something that I was not aware about...How do you do your distributions, if you dont mind me asking?

I was too busy partying, drinking and getting fired from every job I had because I was lazy or hungover!

Thought you all would appreciate a dose of reality from the trenches of a multifamily operator - Section 8 abatement.If you have Section 8 tenants at your property you have to be aware that there are three parties involved in the relationship (you, the landlord, the tenant, and HUD).

They could also find out if they get any information from your county collector's office showing you as the responsible party for paying the taxes.  

By balance sheet or portfolio lender, I mean a lender who keeps mortgages on their balance sheet locally instead of selling it to a third party. 

I know realtors have property managers that they will recommend but I would also like to talk to managers that would be recommended by a third party.

I always thought it was a bit of a conflict of interest and preferred to buy my turnkey and put a third party PM in there myself.