Landlord-tenant law is very specific to state. 

If the property owner later redeems the certificate in reliance on the deceptive or unfair practice, the unfair or deceptive contact is actionable under applicable laws prohibiting fraud.501.2075 says that the civil penalty for violating: ...is liable for a civil penalty of not more than $10,000 for each such violation.

The recipient of a qualified demand request has seven days by federal law or shorter, if any state law is shorter, to return the demand to the requestor.If funds are insufficient, they won't be accepted and will be returned to the sender (Assuming funds are sent).

This is a good time for you to study your lease and learn local landlord laws.   

I live in NYC but because of the tenant laws here I refuse to buy any properties here to rent out.

(Local laws require one of the units be owner-occupied.) 

I have some friends/relatives who own rentals there, some in Burlington and some near VT Law.

"Lawful source of income" is now a protected class.

However, before diving in, be wary of new laws in the works in the Legislature under consideration. 

Most brokers in NJ are not friendly to realtors wholesaling properties, as it's considered a net listing, which is against the law here in NJ.