Further, LLC s have far fewer maintenance requirements than corporations due to ensure that the “entity veil” is not pierced.  

@Jorge GarciaI would look into bringing on a partner if possible or getting a different type of loan than refinancing your homeHave you also looked into a HELOC as well so you can keep your first mortgage ?

You will just be capped at the price you paid for the property as your loan amount (which is not typically an issue unless you are buying well below market value.) so, if you can truly get a better deal on the property by paying cash it can make perfect sense.

If you want to underwrite a deal conservatively, you should in theory look at the average short-term rental income and occupancy rather than the top, especially if you're starting out.

You qualify for 100% financing and the closing costs can be covered by getting "Seller credits" which is fairly common in this market.

The first 10 min of the conversation was her explaining how she could not afford the electric bill and had to make monthly payments, owed her baby's daddy child support, owed the IRS 20k +, had her wages garnished and had less than $50.00 in her bank account. 

Perform a credit and background check?

Real estate in any form simply is not that complicated and you would spend less just paying an attorney by the hour to fill in the holes for you or  a really good RE broker.

and this new tax is a perfect example of one of those unforseen events. 

That is the benefit of NJ investing and also in Central NJ your taxes are lower than Northern NJ where they are insane.