What's even scarier is the same scenario I described gets the general contractor license that can complete a cosemtic rehab, the scope of work that @Anthony Theokary is proposing and a 50,000 SF ground up podium building with complicated storm water and utility connections.

Norman,The policy I used most often on the fix & flip situation you described is a "Renovation Builders Risk" policy.  

I have a hard time believing this since the IRS describes it as a "special allowance" and "exception to the general rule". 

A sharp customer would be weary and would run from a situation you describe.

Secondly, trying to achieve wealth through over priced real estate markets seems impossible.If I can do one thing, one daily lever to pull, how can I be the guy I described in the beginning?

The best way to describe it is like moving a 10,000lb ball.

I have my reasons for not describing what system I'm currently on and how I got here with 40 doors of self managed SFR.My wife and I have been around the block re rent collection. 

Additionally, I could enter the fray of the council meeting putting as a potential buyer, describing my idea for the property and helping sway them into allowing nonconforming use.

I’ll attach a link to a page that describes this in detail as there’s some things to note. https://www.realtymogul.com/knowledge-center/article/what-is...3) who’s your ideal tenant?

This is how bank originated debt works in the apartment scenario you describe: The lender collects their origination fees and debt service payments are then collected priorty every month until the loan is paid off.