So is it equally illegal when the large landlords drop rental prices in a building as vacancy increases and the market softens?

Right now there're some agents trying to sell me the new build homes, but I've run the number, with the current interest rate it's really hard to get a breakeven cashflow in 5 years. 

So I contacted the tax collectors office and was told there was a legal loophole and that since the building had been owned by a non-profit for part of the year it would receive tax exempt status for the full year.

I thought I could solve the vagrant problem by buying and repairing the buildings.

This is common for that build time frame.

I have done several flips from out of state, in the same markets as i was trying to build a team.

It helps to know which plumbers or electricians like a remodel project vs a new build project.  

The problem is that it take far more effort to LIVE that dream that it is to wake up from that Dream.I teach Real Estate Investing on the side and I will tell you 95% of the students are sitting in class dreaming or pretending that they are improving their lives just by attending the class.In the end, they don't really study.I give a Spreadsheet exam at the end of a 12 week / 1 class per week session on building a 10 Year Pro-Forma business plan for your Real Estate and I will tell you 95% fail out right.Being in class is more about dreaming than it is about putting in the effort to learn the skills to be an Investor.

I would first separate out the original purchase price between building and land.

Encourage him to build credit to 680/700+, get 20% down, and have 9-12 months reserves and then he can get a No Income loan from one two different lenders.