There are some cracks that look fine but a couple are a bit larger than nickel size which concerns me.

Pick a certain percentage of yourTo answer you, we do already have some investment rentals that are doing fairly well (handed off to PMs now), we had used house-hacking methods to get these going and did fairly well.

I'll add I'm in Colorado and our market is very hot right now so I'm not concerned about getting stuck with an empty unit in the middle of winter. 

I would be a bit concerned about the area due to the low rents and price, but strictly based on the numbers it doesn't look bad.

However, as it seems most things concerning contracts are negotiable, is it possible to theoretically construct a deal like this, assuming the sellers agrees to it and it is written within the contract.

But My ONLY concern is the following.

Why more people keep wanting to buy houses in South Jersey is bizarre to me, but the market is getting stupid as far as I'm concerned.  

You should definitely weigh vacation rental vs other methods. 

I'd suggest researching the different types of investing methods and then choosing one that interests you the most and mastering it.

I dunno man - it's lazy advice and only hits one method of investing.