Ideally to really keep everything separate you'll want to just have your LLC, and not your name, on it and that'd likely require a novation or a new policy(full cost of title insurance paid again).

The original plan was to live in one unit (as requird by the loan terms) for one year and rent out the other, then move & rent both units after the 1 year requirement (currently living with relatives).

I would be willing to make a co-hosting deal if someone has contacts in the region, as my responsibilities in Maine require me to be here more regularly.

It's not a New Jersey thing, it's the IRC code. 5.7 Sfhttps://buildingcodetrainer.com/egress-window-requirements/

The price of the house ($1.4m) requires me to secure hard money lending to purchase. 

However, bank is not accepting virtual address as physical address and the banker is telling me that I cannot open an account in a different state than  where LLC is registered. 

The goal of real estate investing is financial freedom.Financial freedom requires a rental income that:Increases faster than inflation: Unless rents increase faster than inflation, your true (inflation-adjusted) income will continuously decline, and your time off the daily worker treadmill will be short.

In NJ, for example, we rep a ton of landlords and require 3.5 months up front to rent which get you a better tenant and screening as we go through the NTN or rent spree (first month's rent, 1.5 security, 1 month realtor fee split between listing agent and rental agent).

First, you have to buy it on the courthouse steps to claim ownership - that is required to rent out the property.

Investing is a great way to build on generational wealth, you will be required to take risks.