Typically I pay it, no questions asked, because why would I have any questions? 

Typically this is so that apartment complexes don't have to have all of their office staff licensed.

For newly constructed, purchased or renovated properties and also retroactive generally over the last 10 years, building components are properly classified into individual units of property and accurate recovery periods for computing depreciation deductions.

Otherwise, people in that price range typically have their own furniture and want to use it. 

I know that I would also need to qualify for a construction loan to rehab the property.

I don't know many urban/inner city new construction residential projects where the Code doesn't require sprinklers for life safety.

I keep hearing about 1031 exchanges, but I'm finding that flips typically can't qualify because I need to hold the property as an investment for two years and then my profits from selling need to be held in a 3rd party account until the purchase of a new like kind property.

I can put down 25% considering this will be a secondary home.Reason for considering SFH - No prior RE experience, Tenant Class, Newer construction - no existing problems,newer townhomes are priced starting at 420k$'s ( higher HOA and still has a shared wall) Looking at 4000$ max as monthly expense( mortgage+insurance+HOA+ Property Tax ).I say expense , assuming the residence is not occupied immediately (Vacancy) .

@Elvin Luccon, with all due respect, you're neglecting the biggest opportunity in LA investing right now: ADUs.If you have the money to put 50% down on an LA fourplex, you can definitely pursue an ADU strategy to cashflow faster and with less down.LA ordinance allows for the construction of two ADUs on any multifamily property.

I think it is the type of mistake that is made and how the accountant deals with you bringing the issue to him/her.I think the accountant should be doing atleast a bring overview of the documents / information that you provide.At the very least, when clients bring me their Profit and Loss, I try to see that they have the typical expenses that I would see for real estate investors and to see if the numbers make sense.