Sounds like you have a track record even though its with "little fish".  

They can report you to the Dept of RE in your state, saying you are acting as a licensed agent without a license, and if you apply for a license down the road, it can be a black mark on your record.

I think this is a somewhat unusual question as I searched and wasn't able to find a specific answer.I found a boarded property that just recently transferred ownership from the prior owner to Fannie Mae, the deed appears that it was a foreclosure and recorded just a month ago.  

So their track record is what got them started. 

Kelly,In my experiance, if you have the money for a DP (20%) the banks will go ahead and count the rent on a property towards your income, otherwise you will have to show some track record for that property's performance.  

I would make sure you get your agreement in writing so you are certain you have the first option to buy and then go record that purchase agreement with St.

I would convert it to a duplex.pre-listed on zillow "make me move" for $419,000 back in August 2013. tax records show owner has not changed but the title was last updated Feb. 2013The mailing address on record is in florida so I'm thinking this person refinanced, then went to retire and is inactively trying to sell.I found this property when I was out walking around so I'm familiar with the area and the price seems fair based on my recent purchase nearby.

Just walk right into your county surveyor or planning department with your map and see if they recognize these are legal lots of record.. or you could order a title report that should give you individual descriptions if they are legal.then you would talk with city engineer  or City manager about improving them so you could build on them if that's what you want to do...

Be sure the builder has experience and a track record, and check references.

I use a Google spreadsheet (Google Sheets) and record the name, phone number, and other notes.