Someone shut off the water main and left it sitting without making repairs.

@Jeffrey Gagnon  I hope that is not your main.

my perusing of the municipal codes looks like you needed to pressure wash a tile roof and paint the exteriors as the main things. 

You can usually buy a property and use it for its original intended purpose without too much trouble or review, but when you try to use it for a different,  non-conforming purpose most cities have some sort of planning/zoning commission that will have to review and approve it before its approved. 

If not how would i classify these transactions for tax purposes?

No idea if it'd work (and you'd hit higher rates) and you run the risk of the appraiser not agreeing with your amount (if too low defeats the whole purpose).

(House-hack)The main reason I'm getting into real estate is not only financial freedom for myself but to get my parents retired.

The main thing you need to do is make sure it cash flows without you living there.

You can not legally, for tax purposes, be landlord and tenant.

This is the contract language section that covers payment terms, incentives, indemnification, dispute resolution, manpower loading, milestone definitions, etc.Substantial Completion is usually defined as a property being able to used for its intended purpose.