I saw on line wholesalers talking about wholesaling pre foreclosures many states have very strict rules on dealing with homewoners in foreclosure. 

I was firmly denied and told, "we strictly do not allow short-term rentals, subletting, or anything similar".

Despite being nearly 60,000 SF of land, strict adherence to the zoning code would only allow 7 homes because the parcels lacked street frontage despite being very deep.

Creative financing, partnerships, or shifting to long-term appreciation rather than strict cash flow might also help in this market.

Hey @Isadore NelsonNYC’s tenant protection laws are strict, especially with rent-stabilized units and longer eviction timelines, so it’s essential to go in fully informed.

Is it better to purchase property as Vacation Rental STR, and then decide to switch to Long Term Rental if the regulations become more strict?

If you're refinancing to a business purpose loan that's totally fine, but chances are good you'll need a lease in place for the unit you were occupying so the lender feels confident that it's strictly going to be used as an investment property.

FHA appraisals are very strict. 

In my experience strictly med buildings are generally developed in the same way as part of a campus or off the path a bit from the main retail corridor, so it really is only suited for that use. 

We have a strict budget in place and will be saving ~$4-5k a month once debt is paid off, but do not an investible nest egg yet.