Never built in Houston before so take my feedback with a grain of salt but I'd put money on it being impossible to build a duplex from scratch for $125 a foot (including everything from drawings, engineering, permit fees, general conditions, labor, material, landscaping).Out here in AZ the builder cost is going to be $200 a foot at best, but add 20% on top of that for the client cost.

@Dan Poratcheck out anything by Tarl Yarber. 

I somewhat understand why the cities are trying to regular airbnb's out completely. 

This can be a very good move if you have plenty of equity tied up in your house. 

Appraisal is a strong background going into this, you've already got a leg up congrats.I'm not in your market but I'm a big fan of all things affordable housing. 

This can encourage positive word-of-mouth and build goodwill if they’re ever a reference for your property.Ultimately, focus on fairness and clear documentation.

Quote from @Charles Evans: You are actually behind the 8-ball on this.

Over this time I have acquired my contractor team and have vetted them through my job as a property manager, figured out my strategy(Off Market/Deep buying) and location.

Is there anyone out there with any advice?

Zoho Campaigns, this is to send out emails similar to Constant Contact.