The main risk is that the city might make you demolish the improvements. 

Rental comps for 2BR units in the area are $965/mo.Assuming I purchase the property for $135K, invest $10k in improvements, utilize a 25% down/30 yr mortgage, and achieve 80% of the total market rents (from rentometer) + 7% vacancy/attrition, this property looks to cashflow approx $400/mo with a 9% CoC return and 12.5% total ROI.My questions are the following, not having much experience in analyzing duplex deals:- How would I accurately estimate rental income in my area for a duplex, if my area is mainly SFHs ?

One of our things on the list for improvements is gravel for the driveway. 

I currently work doing exterior home improvement and was planning on doing a lot of the rehab myself

@Michael Glaspie Depends on the size and how quickly the seller can provide a rent roll, leases and financials incl bank statements.

Where are you financially?

It may not be an issue, most banks will count your rent as income once the property has been rented for 6 months so that will improve your debt to income.

I have not reached full financial Independence but live very comfortable in Fresno CA.

Many electric companies offer incentives for improvements, start there.  

So, if you can find a good cash flow deal, I think it is a good place, but I'd be concerned to bet on appreciation - unless you are looking to force appreciation through home improvements.