Arlen - I'm told that it is pretty "hands off" as rental properties go, and I believe that for a couple reasons - very good reliable and clean tenants, and it's classified as a "luxury condo" for what that's worth. 

I can find classified military manuals online, information about nearly any topic in a few seconds, I've been using the internet for 20 years, I'm pretty good at it.

Our Buffalo sports teams I classify as more of a sickness you can never shake no matter how bad it gets

The way he wants to classify this in the exchange is that he "held the property for appreciation."

But your accountant can classify the assets, goodwill, consulting agreement, etc in a way that maximizes favorable tax treatment.

I'm working on establishing an LLC and I would like to know what SIC code is most closely related to a business focused on acquiring buy and hold properties with very little involvement in wholesaling while not getting my business flagged as high risk by lenders.

To my great dismay, I discovered that if you do this too frequently, you'll be classified as a dealer.

I would classify our building as a C- building right now. 

Generally, materials are broken down into two categories:Rough Materials (lumber, nails, screws, brackets, piping, fittings, mortar, wiring, outlets, switches, drywall, etc.)Finish Materials (tile, grout, flooring, paint, light fixtures, plumbing fixtures, door knobs, etc.)The way that I structure my contracts is that I buy the finish materials and have my Contractor provide all rough materials.I think it's strange your Contractor wants you to buy piping, brackets, etc, because I would classify that as rough materials.There's no way I would ever want to be responsible for buying all of the piping, fittings, elbows, p-traps, etc for my Contractor...I would be at Home Depot all day buying and returning stuff! 

Do I need to classify my investment properties as a business before I get started or will it be no issue as long as I keep all records of expense?