Generally when I talk to my customers looking to buy a property each year FHA usually gets in the way with one or more of its overlays and restrictions.

The property went into contract for $3M while still under COVID restrictions.

Paul has in the past enacted restrictions on raising rents.

Not looking to be restricted to NW Philadelphia.

One thing to watch out for is that Atlanta has significant short-term rental restrictions in place, and while Buckhead is trying to secede from the city of Atlanta's governance, it has not been successful in doing so. 

They can definitely tell you what you need to know legally and licensing wise in NJ/NY as there are some restrictions in certain states and I think NJ is one of them. 

Review your loan agreement for restrictions, and consult legal and tax professionals to ensure compliance and protect your interests.In C State, you can elect to file MMLLC as disregarded entity for tax reasons.

If I was the originator on this loan (loan officer, lender, or whatever title is used), I would have made this restriction very clear to my borrower if they had explained that they wanted to eventually use the property as a rental.

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Even though there is a tenant there now, the association could restrict or limit renters there.