Keep in mind, most condos/co-ops in NYC are anti-landlord, so they will likely place restrictions on when/how you can rent out the space (unless you do it without them finding out). 

Also, what is with the anti renter vibe here?  

To my detriment, I’ve unknowingly been ‘anti-team’ my entire life.

I'm sure I'll never accept another application in this anti-landlord place again, I quit Seattle, but others may like to know. 

Consult an attorney- but if you move into one of the units (2-3 family house) you will be able to avail yourself of more options then would be otherwise available to a landlord under NJ anti-eviction statute.

It is an anti STR policy disguised as a social benefit. 

I don't recommend a co-op, you mean CONDO (co-ops are anti landlord) for an apartment purchase. 

And no strong lobbies or anti-STR cities like Vegas or New Orleans.

Just because I am pro-landlords does not mean I am anti-tenant, and that's what you hoped to get here. 

Now is the time for a lawyer to speak for you from now on.California is one the worst anti landlord states there is and the judge will look for any excuse to side with them,believe me.Don't give them any ammunition to use against you in court by making any threats about anything as much as you want to defend yourself to them right now.You can still prevail in this matter by keeping a cool head and letting the lawyers do their work.