Are there any rules, laws, or regulations regarding this?

You are quoting old rules.New rules have a calculated period of Qualified vs Non Qualified usage. 

@James Syed I am not familiar with your county rules.

If not you might be stuck with the work and the commitment to doing it since the city would be the ruling party.

You just have to do a LOT of homework and play by the rules.

I don't know the rules in the US, but in Canada, you can do that every 2 years and when you sell, you don't pay taxes on the capital gains.

Careful going outside state lines -- contract for deed is not allowed in Texas.I didn't think COD is illegal in Texas, just perhaps not recommended anymore, because it is difficult to comply with the rules or regulations. 

With the new commission rules you can stay flexible with an offer of buyer agent commission, rather than having to commit to a certain percentage going to the buyer agent upfront. 

A friend of mine in San Antonio had a similar situation.. she inherited a vague commercial lease and learned that the rules differ big-tiime from residential.

If I can't hit the 1% rule on a real estate deal then it's not worth my time given my experience and options in the equities markets.