I realize this thread is 3 years old but I’m hoping I can solicit some renewed or updated opinions based on the hot 2019 market we now live in. 

If they are only seeking a check every month and the largest amount possible based on the equity of this other property then sure it's a fine decision.A couple other thoughts though:With a smaller multi-family a vacancy is felt more financially than with a larger one, but the extent of that is influenced by the market's local metro and property location; andWhy not use some of the equity from the property to fund the purchase of the smaller one and then have two properties generate (probably) the same amount of income or more with debt service on both.  

of NJ is based on local zoning laws.

I'm based in northern VA but was considering buy and holds in Reading, PA, particularly the 19604 zip code.  

A friend of mine recommended I reach out on Bigger Pockets, and sure enough you guys added clarity.I think I must have come across with shady intentions based on the feedback, but I absolutely was not.

You set the sales price based on the value today or what is owed.

Take it for what it's worth.http://thslawfirm.com/media/documents/1d31182412.pdfSURRENDER v.

You should approach them differently based on the lead type & objection..

Based in Savannah.

Also, they base their comps on zip code.