Very likely.Note: Even if you only own one rental unit, you probably still have a business if you are not completely passive about managing it.Bottom line: The tax law favors you in most grey situations, and this situation does not strike me as all that grey.

But I’m doubtful that lightening will strike twice

Some have gotten called away from me, which was also fine since I set the strike price higher than what the current share price of my stock is.

All clothes need to be washed and dried on hot & bagged up, furniture checked, clutter eliminated etc... the thought of trying to get 12 different families who have enough trouble understanding me as it is to coordinate all this gives me a migraine. 

Brandon, whenever you look at a property, you should develop a strike price.

Then they have a strike system for noise complaints and what not.

I don't want lenders to get a migraine when trying to calculate my DTI/depreciation and everything else that goes into rental units if I'm trying to refinance my primary residence or second home.

or have a friend play the part of a buyer with the  non profit called 2 strikes isn't out.

I'm afraid if I have the property manager kick them out on the next strike then they'll trash the place as well.I'm assuming the security deposit can be kept to cover any cleaning/repair costs?

The price strikes me as more than reasonable for the learning that it is likely to impart.Also, run this search - "land installment contract law New Jersey" - and you'll find the applicable "Act" that [I suspect] lays out the specific requirements that must me met for entering into what NJ calls “Real Estate Installment Contract Act,”.