I'd do it as an STR, that way when permits/regulations come in you can be grandfathered in.

Happy to provide some insight on the state of the STR/MTR market here as regulations change drastically from city to city. 

Renovated all apartments, converted M2M tenants to annual leases, instituted strict rental criteria, implemented online payment portal, invested $75,000 into leasehold improvements (HVAC, drainage, exterior paint, concrete.)

It is updated every year to comply with the new Chicago rule and regulations (residential landlord and tenant ordnance). 

When looking at SFH check city and local regulations and look at recent meeting agendas if STR restrictions are on the horizon.

FHA loans are strictly for owner-occupied properties, so you'll need to qualify as an individual borrower.

Or is it strictly a "First Right of Refusal" form? 

Given this, the city of San Antonio has changed their short-term rental rules and regulations.

With NOO STRs your property options are limited to just a handful due to regulations.

Tenant laws are super strict here and there are some cities that have rent control.