Situation:Found a seller who wants to sell but doesn’t want to pay 300k gain all at once.Pure vacation property/second home.

The exit strategy is when you buy a property for a short term gain and if the market changes..

They shared I could easily sell this unit for 400K+ leaving a sizable gain in the short term.That being said I would face some significant capital gains and I was wondering if I had any options to avoid these.

Can anyone verify the tax treatment as of today that a gain from owner occupant unit is applicable for Sec 121 exclusion, and a gain from rental unit is applicable for 1031 exchange?

Rate will be lower with a higher down payment, so you'll cash flow more, but look at what you're saving by using that as a down payment vs. what you'd gain by putting less down and and using that towards the next property. 

What is your potential appreciation gains and how far out?  

Once I’ve gained rental income, I would like to finance a Condo and even more rental properties with my income from rentals.

You cannot (legally) exclude your capital gain when you sell your NJ house next year. 

What is something that you thought was true about the real estate industry / investing, but turned out to be different  / not true once you actually gained the experience?

Real estate investors are attracted to medium-term rentals to gain the benefits of extra cash flow versus long-term rentals while avoiding regulatory risks, high turnover, and intensive management of short-term rentals.While many investors are now turning to medium-term rentals to build their portfolios, the lending world has unfortunately been a little slow to keep up.