I reside in NC and the property is in NJ.

Or is it your primary residence?

The economy is to blame but local politics have played a role in the demise of Arecibo as well.I'm not sure how long your most recent visit was or when you are planning your next trip, but I do hope you get a chance to view some of the other " non tourist" areas as you may be pleasantly surprised at the resurgence (albeit gradual) of some of the surrounding towns.I've been a resident here now for the past 4 years and I currently work as  a lender at a local mortgage bank and also am now getting more involved with RE investing here.

So the banking swung by offered to give me two home equity loans, one on my primary residence and another on my rental, to cover the 70k.

That's the only way you're going to shelter capital gains because as described the property does not qualify as your primary residence. 

You'll be converting your condo from a residence to a business, and that can be a big shift in perspective for some.

I can take out a cash out refi on my own residence and retire one or both.

You must screen every adult intending to reside in the property and all must pass screening independently.

We currently have 2 properties in SC and the non-resident taxes are definitely cutting into our ROI.

My husband and I just purchased a single-family to use as passive income in March 2018 by using money from a HELOC from our primary residence.