Since we don't know where it is it is impossible to comment you don't even have a single picture to allow for an educated guess.

I guess you can write whatever you want into a lease, but getting an eviction for anything but non-payment is a very hard road in NJ.  

I would be shocked if this seller is doing nothing more than playing with you.. someone who owns a 1.1 million dollar ocean front and have 800k in equity Is hardly a distressed seller.they will just list it and sell it.. not sure what your trying to do here but.. that's my guess.. just a seller who is playing you.

Although, I'd 'guess' that many fees are between $2,000-$10,000

This seems like an ideal opportunity to BRRR, I’m guessing if you bought for around 60k you should be able to pull out a good amount of cash on a refi and still have rents of $1200-$1400 for a solid cashflow property. 

Let me know what you think.I have considered Expenses as:Vancancy, (3 units currently vacant)Cap Ex (likely to need to roofs soon, HVACs are newish, unsure of water heaters)Maintenance (assume 6% to keep up the property, will adjust after inspection)Lawn Care (currently $300/mo. assume I can keep that contract.)Taxes (Currently $3100)Insurance (not sure what to expect, guessing 1200/property)Flood Ins: Not needed in this areaThanks in advance BP community,Winn and Kaitlin Merwin

I’m guessing you somehow didn’t know your house was in an hoa?

I guess what I'm saying is CYA! 

I guess just getting my feet moving is the point so however I do that is ok.

I guess what I'm asking is what should my next step be especially with the fact the property is about a 5 hour drive away from me.