I'm also a licensed Building Contractor looking to invest in condominiums & duplexes.  

You will need to get a local, rockstar Realtor, contractor, lender, and property manager.https://www.biggerpockets.com/blog/core-four-real-estate-tea...I invest locally in Columbus, Ohio

Do you know how to negotiate and hold contractors accountable for renovations you can't do?

For out-of-state investing, one of the biggest tips is building a solid local team—an agent, contractor, and property manager you can trust is key.

I am looking for contractor referrals he can trust.

Quote from @Rajagopalarao Paidi: How much value goes down for a house with foundation issues, found a house for FixNFlip, they mentioned it has foundation issues and they got them fixed, but whats the value reduction from market price , How safe it is to purchase house like these Not safe at all unless you have an INDEPENDENT inspector who really knows foundation issues gets all the documentation from the seller and talks to the seller’s contractor and then conducts his own inspection of the foundation, house, and surrounding lot.

Material Participation in a Real Estate Trade or Business.This is pretty straightforward but you must materially participate in a real property trade or business, such as development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing, or brokerage.2.

I work with them throughout Michigan to help emerging developers redevelop neglected properties in their communities.

but it's really, really tough right now as there is limited inventory, tremendous competition for deals, money is expensive, and good contractors are booked up.the equity in your home is an example of very expensive money. 

Or is the new builds basically thousand small contractors ?