Find out what your setbacks are for your zoning.  

Some questions that I have include:What are the specific regulatory requirements for residential assisted living homes in New Jersey and New York, and how do they impact operations?

That's a local legal / regulatory issue...If anything, what you are doing is great in my opinion to learn. 

You may be able to find deals in areas that aren’t doing well, but if you can’t dispo them it won’t matterDiverse Pool of BuyersYou’ll mainly be selling to investors, but having a diverse buyer pool gives you more options in terms of exit strategyRegulatory Environment Low regulatory markets can help keep things simpleKeep in mind that regulations change quickly in many areas, so it's important to keep and eye on your markets for changeThings to consider; rules regarding holding a license as a wholesaler, probate laws/processes, STR rules, etcStrong Rental MarketThink from the end buyers POV.

STR just has too much regulatory risk for me.

Oh and did I forget to mention 0% state income / low property tax, limited government regulatory interference and pro-real estate policies for developers/investors?

There may be several options for remediation depending on the state and applicable regulatory context.

I'm eager to make informed decisions and ensure all legal and regulatory requirements are met before proceeding.

The current regulatory regime really screws over the little guys.

There have been some setbacks, but we are still moving forward.