By the end of this you'll know more than a double-digit percentage of landlords. 

I personally also bought a couple two flats to get started and I always looked at it from an overall expense view. 

When the top ones can't/won't do the deal, Backflip usually will and they are super fast and easy. 

As easy as this sounds, it's not simple and usually like pulling teeth.

Some of NJ's laws are worse than NYC or Cali.Yes, NJ laws suck. 

Your income isn't high enough for it to make sense as a rental and the closer you get to your residence limit the greater pressure you will have to sell it before losing your exclusion in whole or part. 500k right now can make $15k per year income with zero maintenance or tenant risks. 

Then the court decides what to do, which is usually sell it.

You are correct that it can be called but you are also usually given the option on either adding to the account or selecting what to sell.  

Our investment to value (ITV) in the notes we purchase is usually in the 50-60% range, a significant amount of equity to protect our position and our private capital position. 

Its usually called a post-completion or post-purchase mortgage.