See what residential sales activities that an unlicensed assistant can and can not do.  

They have even discussed using the RICO statutes to go after unlicensed lenders who are operating under the cover of legal ambiguities.

If you are functioning as an "unlicensed agent" and just representing buyers or sellers, it may be illegal.

I was wondering if it was illegal to pay my bird dogs in referrals if they are unlicensed?

Why you're seen as an unlicensed agent dealing in real estate. 

I have come up with some estimated numbers that look like this, after it is renovated:$700 mo X 8 units X 12 months =       $5600 mo/$67,200 gross projected income$67,200.00 - the operational expenses of 35%   = $43,680 NOINOI/10.5% CAP = $416,000.00 $416,000 - $180,000 rehab *(being conservative and assuming all work so far, aside from new material not yet installed, is a loss due to unlicensed work). = $226,000.00 asking priceDoes that seem right?

Keep complaining to the appropriate city departments (animal control, code enforcement, DMV for possible unlicensed vehicles, etc) while also asking if the other landlord might be willing to sell. 

He explained that unlicensed activity will receive more attention. 

As an unlicensed party to a transaction :)

Chances are, they are unlicensed contractors, and you could recall your payments made to them, let them finish the work, and sue for inconvenience.