Alternatively, the first mortgage may have a due-on-sale clause, which the first lender may activate when they learn about the wrap loan, meaning the first mortgage suddenly becomes due in full without any funds available to pay it.Current law has failed to prevent these scams and make victims whole.

@Gabriel Floyd, you've got a few choices but none are ideal.Your gain is roughly 50K plus a lot of depreciation recapture  (maybe another 40K to be recaptured).

Shop around .... get multiple offers and consider ALL the alternatives.

I know what the responsible choice is but it's just going to be a rental property so I'm sure it doesn't matter all that much. 

If so, a conservative investment like this would be a wise choice  to best weather the storm.  

In NJ I have no choice with current tenants- they keep their pets.

Your choice on a second coat.

Adam,Sub-metering / RUBS may work on paper but you also have to consider the tenants alternatives and not just works for you.If all other similar properties in the area include utilities, then you will need to charge a lower rent and you are hoping that the tenant is willing to take on the added responsibility. 

I definitely plan on purchasing my first multi-family(Duplex,4plex) for a good deal but it's making the right financial choice in regards to financing.

Hopefully you have more and better choices there in Denver.In my little area there is only 1, possibly 2 'stagers'.