Something that can produce blueprints for Permit Applications, etc. 

There is one already rocking and rolling!

Meaning, if your rental is producing 12000€ of income, your taxable income would be 3996€.

The hard part is not finding the properties that will produce a good ROI but realizing that the properties will produce a good ROI.  

Thus, what I'm trying to understand is how one could position themselves in a market to ultimately produce a product that is far superior to those around them, whilst ensuring that others can't ride on your success.

Is it possible that someone out there would partner/fund a deal if it could produce good numbers if I do all the work side of it?

This is, however, just based on my quick calculation of costs that I did maybe 12 months ago when I had a similar thought to yours (just not in Little Rock).  

I have bolded it]"(d) Acquired or produced tangible property.(1) Requirement to capitalize.

An unrecorded warrantee deed would have produced the same results.

I mean pull up floors, remove sheet rock to fix mold and whatever else needs to be fixed.