Just go talk to more sellers and find one that has the same type of property and condition as this one that is motivated to sell it to you for a number you want it for compared to comps. 

Having said that, we are unsure how New Jersey and the DCA is going to define Lead-Free properties. 

There are also other websites that have a Cost of Living index or other comparison tools.

Investing in real estate is a great way to generate passive income and wealth if you are in a position to do so.

Sounds like a cash out refinance would be the best way to tap into that equity. 

Home prices are way up in the last few months.

In this case, since they are borrowing their payments, these would get added to the principal balance each month, and interest would be calculated on that.If, for example, the interest rate on the note were 10%, they would implicitly be borrowing their payments at that rate.

Hard to understand your post but am assuming you are saying that the individual acting on behalf of the seller was assumed to be an agent but you are finding out they are actually a wholesaler?

IF you are going to down that path, focus on building relationships with key investors in town and top performing CRE agents.

so, if you get 75% of the $200K, that's $150K, minus, say, $5K for closing = you get a check for $145K.