Take a good look at factors like vacancy rates, operating expenses, debt service and any pre-rental improvements and repairs.

For example, if you’ve budgeted $750,000 for capital expenditures, which might include renovating units, improving landscaping and new paint, etc., you can reallocate some of that money and use it for your escrow requirement.

However, once you do that, and your credit score improves, you can then refi back to Conventional/jumbo loans.So it's an annoying 2-step process, which incurs more cost, but just bite the bullet and do it. 

Yes, employment rates are improving and things appear to be normalizing but the eviction moratorium is still in effect and the fed has said rates will remain low for at least a year (why?

If you’re a trust fund kid with access to ample cash, you probably don’t need to read up on hard money loans and private lending (unless you want to employ leverage, in which case I congratulate you on being wise beyond your years).My point is that any discussion of which books you should read should be tailored to you and the areas you want to improve.

I understand that NJ is a tough market and its an improvement from renting a room and building no equity.

You're correct that the IRS would not reimburse you for any costs of remodeling/improvements. 

Two separate things...the code enforcement violations will actually be an investment in improving your property.Evicting a non-paying tenant will actually be a financially and emotionally rewarding experience for you.  

I find that improvements in paint, kitchens, and bathrooms yield the most bang for my buck. 

Additionally the argument that improved fiscal responsibility is the solution, while it has obvious merits, does nothing to address these points I am touching on or that @Boris Suchkov explained in further detail.