This plays into the affordability issues for tenants by allowing them to live in nicer neighborhoods for less money, yet I get monthly revenue comparable to short-term rentals.I have also shifted my focus to buying better.

You want the highest quality tenant as possible & those two intangibles we find makes a difference. 

RE Brokers in the area are a key team member as they should know the area, good rental areas, and they will be a good resource for rentals (possibly, if they deal in rentals).

I just bought it in the fall and am trying to complete a bunch of modifications during off-season (e.g. metal roof, certain safety features, treating the deck, possibly updating the fire pit area, etc). 

Quote from @Tim Hem: Looking for some opinions on a recent home sale and possible capital gains exemptions. 

getting cash flowing rentals in those states is certainly possible, but much, much more difficult than advertised. 

Just ck to make sure this is possible in NJ.

Sounds like you are getting hit with a lender who has overlays and possibly miscommunication between the loan officer/processor to the underwriter.

But if they don't willingly make the payment your only option would be to sue, and they have the upper hand to let the lender know about the sale possibly triggering DOS.