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,”. 

The bank regulations are somewhat screwy for business owners as well as real estate investors so you are starting with 2 strikes good luck.  

Soo this does initially strike me as there being some dishonesty going on.

I'm striking out finding a lawyer or title agency who will close a sub2.Telling them I understand and accept the risks involved hasn't worked.Are there magic words or a secret handshake?

Then there is the things that no one ever thinks about such as a lighting striking an house we manage last week or an bad eviction, which happened to me 2 months ago.