The dealer says his mover charges $500 just to give the estimate....The house is already assembled as a display house so it need to be deconstructed,moved and reconstructed.

I would never recommend insuring a property for only it's market value if you are a newer investor and/or... finance the purchase of the property, could not afford to come out of pocket to pay to completely rebuild a useable property should a large loss occur.Yes the chances of a major loss occurring are low - but if it does happen... you could be wiped out.Example: You buy a house for $50,000 with an estimated reconstruction cost of $150,000.

It was rough when I was there but noticed there is a Good Will there now and you can see some reconstruction going on currently.

@Alicia JohnsonThe answer is maybe, as you probably expected.As far as how hard it would be to prove - remember that the IRS requires a detailed time log, created as you go (as opposed to reconstruction during the audit).

I just graduated from fellowship and will start working as a vascular surgeon in August in Louisiana.

Constructs or reconstructs it. 

I didn't read this to ensure its accuracy but it certainly looks to be from a credible source. https://www.irs.gov/pub/irs-utl/33-Real%20Estate%2...Cliff Notes:Real Estate Professional Qualification • Material participation in each specific rental • Material participation in separate Real Property Trade or business • 50% rule • 750 hours rule • 5% ownership ruleReal Estate Trade or Business Defined IRC Sec. 469(c)(7)(C) Any Real Property: • Development or redevelopment; • Construction or reconstruction; • Acquisition and/or conversion; • Rental Activity that is not a Passive Activity; • Property management; • Brokerage activities.Example 1: Laura owns 5% or more of a real estate sales office • Works full time as a broker • She owns 3 rental properties and: • She finds the tenants; • Approves tenants and leases; • Approves and oversees repairs & improvements • Net rental losses are $31,000 and her modified AGI is $160,000 before the losses • Deduct the full $31,000 in the current tax yearExample 2: John acquires old homes and contracts 3rd parties to renovate and ready for resale.

Only, I want to make sure that the infrastructure is in place to be able to handle that kind of volume.I actually do work with some high net worth W-2 earners, surgeons, MD's and such so I see the potential of the future to make some moves but the question is "how" do I get there. 

Kind of like a PCP and a surgeon.

I would read that town ordinance and call the rent control board. if they are behind on rent and also you do major reconstruction you should have some out.