Quote from @Nick Am: @Michael Plaks--> The SE taxes are STRICTLY NOT in addition. 

Are there any additional considerations?

Its more like 98/2 with an additional 5% saying they do stuff so they can get a piece of someone else's hard work while they have not done anything and live in their mom's basement.All that said there is value well over the cost for those who apply themselves to deriving the value. 

Additionally, confirm the transfer won’t lead to property reassessment, which could increase taxes.

Given my lack of experience in accurately assessing the additional costs and potential risks of investing in an AE zone, I felt it was best to step back and refine my evaluation process before taking on something like this.Thanks again for your input!

Additionally, please share if this was a scam or not.

I haven't heard of the ability to add additional $250k primaries, but I'll have to dig in to try to learn more about that!  

@Edgar Duarte Selling now under the primary residence exclusion avoids capital gains taxes, allowing you to reinvest the $500K equity in diversified assets like index funds or additional rental properties.

Additionally, involve a real estate attorney to ensure the transaction aligns with legal requirements and protects both parties’ interests.

Also, be sure to check with the section 8 agency managing the tenants - sometimes if you pass on an additional cost like that they will no longer be eligible to live there if the rent and utilities exceed what they were approved for.