Check with zoning to make sure its a legal 2 unit house .Besides that if you separate the electric , and get it for $135K  its sounds pretty good . 

I have seen on this website answers both ways regarding this (the site administrator saying leave it in Sch A, and his colleague (also a enrolled agent) advising that it can be written off in Sch E, but that there are certain restrictions mainly -- you must have passive activity gains where the deductions are covered (no passive activity loss carry over allowed.

Learn how to manage your money, get a second or third job, pick yourself up by your bootstraps and if you want the priviledge to own your own home the do it the right way.However, the government, banks, etc.. will need to deploy their money and If the present environment becomes too restrictive, they will need to start lending again.My little house in a community in San Diego, lower middle class 1040 sq ft.  

I am starting to think about the proper legal framework on my rentals to protect my personal assets/credit (such as an LLC, S-corp, etc.).

(We do not give tax, legal, or investment advice; you, the account holder, make the investment and strategy decisions.) 

I want to split legal responsibility for Mowing and snow removal between my two duplex tenants in their lease's.I'm looking for the exact language I can add into my lease's for the future.

Of course, I'm assuming you are ethically and legally wholesaling properties. 

Where did you get the amounts for Supplies, Legal, and Inspections?  

Owner finance is great but not if you lose full control and if you use his model there could be legal ramifications as well. 

However, and after exhaustive phone calls to the county SO, Clerk of Courts & auditors' offices, no one knows or will give that answer because it is "legal" advice.