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I'm a finical duma$$... so I will give you my advice.
A. If you want to save your investment in the NJ house rent it out.
B. If your priority is to move your family and get a house in NM cut the price and sell.
I rent out my front house that is twenty feet away... and it is a PITA... however I bought the property over ten years ago and the rent just about covers the mortgage.
It seems like if you rent you will just get the PITA part.
If I were in your place I would do B.
But you are not me.
As far as the nightmare I do feel for you... but you have a wife, a family, a job (when many don't) count your blessings.
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Gary Fisher 29er
2019 Kia Stinger 2.0t gone 
1995 Miata Sold
1984 944 Sold
I am not lost for I know where I am, however where I am is lost. - Winnie the poo.
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