All tasks were auto scheduled and there were no constraints. With the newer versions of MS Project, I believe much of the waterfall relationships were corrected when inactivating tasks.
That being said, I believe the cause of the problem was due to what I would call a circular reference.
Here is the link to the original example: (Let me know if you have trouble viewing any of the images)
Here is the link with the original inactivation of the task:
The problem was that my “Finish House” tasks already established a relationship with the ‘Add Electricity” tasks due to the “Add Plumbing” task. Therefore, when I inactivated the task, resulted in an error in the total slack (see gantt chart). By removing the “Add Electricity” predecessor of “Finish House” allowed for the linking of tasks to properly work.