Your best option may be to increase the rent to cover the additional expense.

Willing to exhaust all options as this is a big fish. 

Once the city gives direction, then start to look at available options and penciling out the numbers to see what makes the most sense.  

There is 3-5% down payment options you can use.

I’ll also connect with locals through BiggerPockets or Facebook groups for first-hand insights.If visiting isn’t an option, lean on a reliable local team (agents, property managers) to help vet the area.

Curious if there are software options for managing both types of rentals.

They don't allow auto payments or automatically add late fees, and tenants would have the option to pull their payment back, which is not ideal.

For funding, explore options like FHA loans, personal savings, or creative financing, and focus on New Jersey markets that align with your goals, such as Newark for rentals or commuter towns for house hacking.

Focus on understanding the rental market, conducting thorough property inspections, and leveraging owner-occupied financing options like FHA loans.

They won't always be upfront about this with you but if know they're selling because they want to retire, that opens you up to different options vs if they're an investor just selling for profit.