I have decided to exist the NYS market due to the regulations.

Seems that you would need an additional living space like a TV-free "living room" (something I had in the midwest growing up, but aint nobody got space or $$$ for that in California) or a finished basement (another non-existent luxury where I live) if you want an additional living space to spread people out. 

Cooler than carpet in the summer, warmer than hardwood in the winter. 

Note syndication are open to existing relationships or accredited investors only because their reporting/disclosures do not meet the requirements of public companies.  

I would investigate the tax implications of your plan to sell the existing house.

Do they actually not exist, or are they just different from the ones on your agreement? 

In addition there are a wide range of grants HUD supports in most cities to improve a property to rent to low income people.Perhaps the best decission in looking at section 8 and low income rentales are the larger assets of using the contract incentives and special financing programs that only exist to those who provide services and employ your tenant that you could benefit from.

I would look at the existing STR's and see what their bookings are like in the next couple of months.

They exist here but they are not as plenty for a single family homes.

Nowhere is safe.  50 years from now short term rentals in residentially zoned areas will not exist.