My 250K tax benefit will run out before his lease does on the 2 of 5 rule, so it might be a good time for me to sell - and help him with a lower rate than banks can give while giving me income until he refinances.

is it illegal to sell my Tax Deed by quit quitclaim Deed?

The split would be determined by whether the value to us by selling off a few or not.  

Sellers want the 5.5% or 6% cap rate to sell, but buyers want the 9% cap rate to buy.

Many of them have caps to what you can sell the homes for so beware of this.

They currently sell attached duplex/triplex/quadplex in Central Oregon at prices LOWER than MOST resale closings on MLS.

We are in the 2/5 years so we could sell and profit 200K+ tax free or we could rent with cash flow (not including mx) 1K/Month.

You may be lured in by a cheap price or a pushy agent trying to sell you on a deal. 

I was referring to when you sell it.

In other words, I see the short term value in niche, but I would never want to become so niche that if I wanted to sell in 10 years I might be pigeon holing myself