Ensure the sublease is explicitly permitted in a written agreement with your friend and aligns with local STR laws.

Assessments in NJ are not done on sale, unless it's a new build or a complete renovation where the permits tip them to reassess, so every three years or so they reassess all of the properties and taxes go up most of the time.

We have requested permits to fix this and have not heard back yet. 

Start with a standard offer, and write a contingency into it for electricity, all the below ground utilities, and then work your way to zoning, permitting etc.

It seems like every city, county, and state has its own rules, permits, and tax requirements for short-term rentals, and I’m finding it overwhelming to navigate all the different layers of compliance.For example, some places require business licenses, transient occupancy tax permits, or even special zoning approvals.

I understand there is a cost to have it burned down. the home would have to be prepped to to meet the requirements for permitting.

I am currently going through business permit

Make sure you do an OPRA request to check for open permits and confirm with the town whether the 2/1 below is legal and permitted.

You’ll want to check if your specific work falls under their home improvement contractor licensing, or if there are additional local permits required depending on the county.

You must get a permit, drill holes in the bottom, demo the bondbeam down a foot or so, and then fill with compaction inspections along the way..... last time I checked it was about $10,000