Do not rely on it for legal advice.

And an actual lot split which was a SFH on .85 acre now turned into two separate lots, with a duplex on each lot.

There are really great REI opportunities in different markets - markets in the Midwest and Southeast of the country are particularly lucrative - where not only are the purchase prices reasonable for most RE investors, but the homes are turnkey (new builds or completely rehabbed homes, tenant ready, systems 10 years of life remaining on them, property management teams in place) with appreciating home value AND appreciating rent.

I am in my working years, not relying on rental income, and am focusing mostly on improving my overall net worth (not as focused on living off the cash flow).

If you sell directly to a homeowner, the issue can come back on you and bite you in the a...  

@Clifford Pereira Here's an article I wrote on REPS status that you may find helpful!

Are there any pushbacks on this deal? 

$100 a month is not enough for a duplex depending on age.how well do you know this market?  

There is no current tax on rental income and capital gains.

And as you can read here on BP this is probably the number one recipe for financial failure.