An adjacent similarly sized property is currently for sale for $350k. 

I have purchased a few properties through tax sales, sometimes you can find great deals.

This is new to me and I know NJ isn't the best state to be a landlord, so trying to figure out what my rights are.Secondary question - is it worth going through the small claims process to recover $7,000 from this person?

So let's say that you've got a house for sale and you accept a buyer's offer contingent upon the sale of a property they own.Then you get a cash offer from another party wherein their Realtor tells you that in your state, if you, the seller, gets a cash offer, then Buyer 1 has 72 hours to come up with their money or lose their contingent offer.Not getting anywhere looking this up, so BP is the go-to info machine.Something sounds off about this.....?

Does anyone else find these cost figures to be off?

I figured this to be a decent deal at the time considering i only have to pay $349 out of pocket, but i am quickly finding that this was a less than ideal purchase.

Landlords do need to figure out what they want to do to recoup some of the costs, but that may not be possible. 

I actually did one such sale recently.

I would first get clear on where you are heading, and how much you are expecting to clear from your sale in order to better establish a buy box for the replacement property.

So I’m going to lose money either way, so I’m trying to figure out how to lose less.