You could explore renting out the garage as storage for someone, but then you need to look into insurance, liability, etc.

I think they have updated limits on owner financing sales as well.

However I wouldn't recommend this or wish ownership of these liabilities on my worst enemies. 

The ordinances only apply to city limits currently so you’re probably fairly “safe” in the county.

Buying a rental property through an LLC can offer liability protection and may make it easier to separate personal and business finances.

., mitigating tax liability for passive and non-passive income).

There is a big tree there, limiting the width of the alley to about 8ish inches.

@Ali Mol In a lease-to-own agreement, the $1,666 monthly credit should be treated as a liability (deferred credit) rather than rental income, as it is allocated toward the purchase price.

Worst case scenario is where a seller does a lipstick on a pig repair such as just parging over it and then not disclosing the issue because you might get the sale price but open yourself to future liability when something happens. 

Long story short if you are committed to house hacking the sky is the limits and there is endless possibility, it really comes down to your comfort level and where exactly you need to be in New Jersey.