I'm Tomas and I finally decided to become a member.

She has since passed away, but her final months were better than they otherwise would have been, and her son's financial health certainly a crap ton better than it would have been (I caught him right before he was going to start missing payments, disqualifying him from any mortgage because his FICO was already shaky as it was).

The calls I made started taking their own path, til finally I realized that all I need to do is introduce myself, tell them what made me call and let them know I was interested in buying their house followed by asking them any variation of 2 questions...#1 are you interesting in selling?

(This is legal in most states only a few are against)As soon as final inspection is passed contact the city inspector for the certificate of completion or occupancy (depends on state). 

And finally what are the tax consequences to this from the POV of the buyers and sellers in this situation?

The other potential issue is what if they aren't satisfied with the final product.  

We end up eating the cost of things like nails, putty, caulk, buckets, paint pans, rollers, putty knives, trowels ect due to waste and the tools ect walking off with the contractors.  

I am finally ready to sell a rental on Green Mountain, and buy a SFH off south Broadway.  

Actually I'm not 100% sure what to do so I would like others opinions.We finally got to a point where we can pull $70,000. cash out of our primary home. 

Very true, but as a seasoned investor I can say there is a market price, and then there is the off market or final agreed price.