Is it too much of a hurdle for the Local, Esq. to review the local law? 

I would pay one of them to review the full details of the transaction and give you a road map of how to proceed before going any further.

He said that he has to go back a number of years to determine any losses that were not allowed for NJ that can be added to basis...He stated that NJ does not allow net losses on rental properties ; however, those losses can get added to NJ basis so he said he has to go back and review all my losses over time.  

You really don't need any up front cash other than having an attorney review your contracts

Originally I was planning on buying a multi family in the area I live in, but after reviewing my lease, I’ve found that I really can’t break it and I have 8 months left on it.

Quote from @Chas Lumley: Quote from @Caleb Brown: Getting leases is typically done once under contract, I always have verbiage that leases will be reviewed by buyer within the inspection contingency.

@Devin James My bet is on that they close. 

The buyer pool is beyond flakey..Your best bet is a local investor.

outcomes are on you, the investor.you may want to review these threads to see what others experiences were.https://www.biggerpockets.com/forums/48/topics/1137397-balti...https://www.biggerpockets.com/forums/12/topics/1215726-break...

Any type of seller financing should absolutely be reviewed by your attorney and your cpa.