So I did what I need to, cross his name out of my buyer list and sell it to a different buyer. 

New Jersey also requires anything 3 units or more to have a multiple dwelling certificate, aka "Green Card"  

We then plan to move out in a year and Airbnb all three, which for the area should be very lucrative.In the long run, we could remodel and force appreciation, fingers crossed and sell.

However, I don't want to end up homeless, or worse, land myself in jail because I didn't cross a t or dot an i.

Thanks to all for the great input, advice, and stories shared.I'm at a bit of a cross-roads.

Assuming you want use the equity to buy another property ask around at small local banks to see if they will cross-collateralize.

As reference I rent a duplex in midtown crossing (1900's build nice, but not updated) for between $900-$1000 a month for a two bedroom  (1500+ sq ft) 1 bath that includes a shared yard and off street parking.

I had a loan on a home on Green St. in SF..

He looked at me crossed when I mentioned Tremont St.

I'm just assuming I should address the issue because, unless I find a green thumbed tenant, this one might be tough to manage.