From my moron contractor that lied to us he was licensed in plumbing and electrical.. that did all the wiring and plumbing and then covering it all up with sheetrock, trying to scam the city into thinking no one touched electrical, to not ever having a single inspection done, then stealing money from me, and running, and buying the cheapest material.. ever!...

If he screws up you have all materials ready to go for the next guy in line to pick up where he left off.

I'm rambling now but all of this isn't really material. 

It promotes a mental assumption of gain.

However SE tax is imposed on active trades or businesses which generally means material participation is required. 

Attorneys just don't seem to want to assist in any way as this kind of deal is promoting breach of contract with regard to the current owner and has some risk.I guess if someone could convince me it's possible, would they be willing to explain a step-by-step process to me?

Make sure you know what that particular street in that particular neighborhood expects as far as quality and materials, and meet those standards.

Invoice from 1998 states "Install molley pole in basement to support the steps.Labor and Material $175"Your thoughts please. 

The stone and other materials used that I redid the bed with has no part in this charge as it is my improvement on the land.  

It seems like most everything I read or hear promotes a value-add strategy for multi family investments, regardless of the long term holding strategy (buy/hold, buy/sell, buy/refi, etc).