The problem is the waters are muddied when a negative occurs with the investment that is in no way the result of dishonesty or incompetence; it’s merely the revealing of the probability of an outcome that has been properly disclosed as a possibility - yet the unsophisticated investor begins crying Ponzi scheme, theft, incompetence and every other accusation they can think of rather than considering the possibility that they made an investor with higher risk than a money market fund. 

Some areas have restrictions on mobile homes or rentals.Utilities: Ensure the land is equipped with essential utilities like water, sewer, and electricity.

First you need to learn to separate the following:Maintenance: usually things related to wear & tear or tenant damage.Repairs: usually broken items like doors & windows, caused by tenant or nature.Capital Improvements: usually expensive things that wear out: hot water tanks, furnaces, roofs, etc.The seller is correct that Repairs & Capital Improvement items should not be a factor for awhile (ALWAYS get your own inspection to confirm).

Indeed, where we pay a REALTOR commission, we are initially under water, but look at the long- term probability the rental will remain in the system.

I generally agree that buying SFH as first investment is an easy way to test the waters; however, if you’re set on REI I suggest buying a duplex or quad.

NJ investor myself - happy to help you navigate these unique waters! 

For sure PG&E requires this for gas and electric, and I think most jurisdictions require it for water and sewer as well. 

However I have had to replace some major appliances recently which had put my in the defecate and added to my motivation to sell (Hot water heater, two refrigerates and a washer/dryer).

What water source is in that area?

However I have had to replace some major appliances recently which had put my in the defecate and added to my motivation to sell (Hot water heater, two refrigerates and a washer/dryer).