The building structure continues to depreciate over the 27.5 or 39 years.

Luckily structural/engineering reports came back great and inspections didnt call out anything significant.The numbers:Bought the home off market and paid my real estate friend to set up all the contractual information and represent me. 

If so, how did you structure this?

I don't know if this will make you feel any better but even if the roof pancakes flat the interior and exterior walls should support that weight, even though (of course) the house will be totally uninhabitable until the entire roof structure is rebuilt.

If the contractor is doing any significant structural work, or adding on to the existing home/building, then I'd certainly discuss them having their own builders risk policy due to the size and scope of the work they're doing.Hope this helps sir!

Moving forward with this goal in mind how would you suggest structuring a partnership with my friend to do this when I find another deal?

If you find out why the seller is selling that might help give you ideas on how to structure a deal. 

I wouldn't mind meeting up with you two at some point and see how you are researching properties out of state and structuring deals.

It is also not uncommon for a CPA to be unfamiliar with the workings of these structures.

However, there are some areas which act more like tax traps which can catch people when they aren't paying attention and selling on a CD is one of these areas.My whole disagreement was based on how they are trying to make money by structuring a CD as rent.