you need to walk into the city planning, smile and play dumb... give them a sob story about your sick Mother in law, and wanting this property, but you just dont know how they handle things. 

You just need to ensure no disqualified parties are involved in the transaction, and that the note is in conformance with state lending laws/disclosures.

Anyone familiar with any reasons/cases/laws of why this would not make sense?

And familiar with NJ law?

We frequently provide value to the forum by answering questions and posting updates to the tax laws they relate to real estate.

Do your research on TX seller disclosure law and know the right questions to ask.  

Being totally ignorant of the law.

Any gotchas with insurance, hard money loans, laws and the like that you know of from experience?

I would make sure that you served it correctly per the law.

@Leroy Wallace Jr First and foremost learn the laws.