You are losing money on both properties. 

If this is your first investment property I'd shy away from HML and look else where.

Given your assumptions, you are not going to be able to get enough of a loan to fully cover the rehab, even with a hard money loan, so you'll need to pull in cash from elsewhere.One possibility is to have your mom sell you the house with a personal loan, not one attached to the property. 

I was able to sell same weekend for full ask.

With a fideicomiso, the first $200k is tax-free when you sell.2.

(not sure on state law but this probably is a tough sell)4.

The first thing I ask is why am I Buying the property.I always look at the exit strategy first, is it going to be a rental, a lease option sell, am I planning on living in it.

@Muhammad Kashif Flipping a property in 6–9 months results in short-term capital gains, taxed as ordinary income (up to 37% federally, plus NJ state taxes up to 10.75%).

I'm buying and selling industrial.

I can handle about 80% of the work for a property flip.