If you are uncertain about any of this I would recommend spending a little on a CPA that understands RE investing.

I'm sure this was not comfortable or fun to spend this money for the fixes but the fact that you were able to find a way to do so and stay in the game is really a feat so kudos there!

He spend $3k fixing it up, rented it for $700, but lot rent was $300.

This way it’s no up front out of pocket expense for me and they then have the extra money to spend as they need it.

If this is a single family, they are responsible for pest control.

So you each spend a few grand on a mediator and then work it out.

Jersey City tends to fluctuate with rent control laws, right now they are more favorable for landlords then they have been in the past.   

If you put in an offer at 85% of list price on every decent home on mls in your targeted area, you're going to get a house or two that should only need cosmetic rehab - which you could control the costs better.  

Still expensive though.And why would you want to invest in a city with rent control?

That is just a one off report so before you spend a buck fiddy, it is a good idea to visit a couple TK operators in person first.