If your “significant other” insists on getting a house....then buy a house with an in law unit and househack or Airbnb accordingly.

I also found a rare SFH with an in law suite with separate entrance which has allowed me to find some creative methods of continuing my house hacking ways. 

The property has an in-law suite that we currently rent out.

My whole question is do rental income payments have to be sent to a joint bank account and what laws and regulations are there requiring this?

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.