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. 

I would say that a 1.20x DSCR ratio minimum for BRRRR is a bit high - plenty of options out there that wouldn't require such a hurdle

The purchase decision only requires online thorough research, then try to buy in a 401k/ira so you don't have to pay taxes on the Dividends which can be large.

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.

My CPA advised me to split the generic costs such as property tax and water bills equally between both units, which seems reasonable.

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.

We average about 10 a month (as a team), but of course at a lower price point.Whatever you have in the water, We don't see that in Milwaukee. 

Where is the water coming from?