First though, I am not an attorney and this is not legal advice.In my opinion, what you are describing is illegal and I always would suggest to stay away of skirting any laws/rules.

Whether it's renovating older properties, converting unused spaces into rental units, or adding amenities like laundry facilities or parking spaces, there are numerous ways to increase the income potential of a property.

I am looking at this as a cash flow play and would like to know if this neighbourhood has the potential for rental hikes around 3 to 5 percent in the next 5 years?

Yes they are legal.

Depending on how clever the current tenants are, they could potentially drag it on for lot longer. 

In a similar vein, we look at occupancy comps in the area and consider the potential that a slightly more unique property might incrementally do better in terms of occupancy rate and by how much, etc.

This deal was found through a wholesaler who has been very active with me and this property is potentially for sale. 

So, I don't see how legal liability would fall on you in the end. 

For the record, it is perfectly legal to sell zero rights under a quit claim deed.

Do not rely on it for legal advice.