The property looks good & seems like a helluva deal if you could build a duplex later on.

My parents have no issue doing a quick claim deed although it might clog up timing on title work with the sale.Have a meeting with tax attorney later this week but wanted to see if any folks have had similar experience and can share success or horror stories.Thanks

Although I wanted to tap into the HELOC at a later time.

I was wondering if that is enough to secure a source to finance the project. from my understanding development financing usually comes in much later when a building permit has been secured from the city. 

@Jessica Es they have a set application, but you could use it as a pre-qualify and ask additional questions later.

The bank appraisal was completed and submitted same day(appraiser let me know) but still waiting around a week later.

I think about the house I bought in 2016, that I later house hacked.

The basis of the lot goes into the purchase and the rest is either profit or additional depreciable basis.If you later sell you would liable for all tax including1. the appreciation of the lot (no depreciation because you don't depreciate land)2.

What would you do in my shoes---Raise to market & take a chance of late rent, missed payments, move out? 

You couldn't come back later and decide to only purchase one and not the other.