I used to buy in a 6.5% rate environment just fine because of the lower price points.

In some regions, probably NY and environs included, in addition to an RE license there is also a yearly fee to access the MLS.

My biggest concern is not being able to list the home until early April due to Wells Fargo's regulation.  

Many STR (short term rental) sites, such as Airbnb, will allow a "cleaning fee" to be added to the cost, which you can use to offset your expenses without raising your publicised rate.As far as regulation goes, it is always a primary concern of mine when looking at STR opportunities...

If tenants are in you may be caught in a bad situation if they were not well vetted.I know Phillipsburg is near you and sort of "popped" into my head in your descp.Many of NJ multi families in that area were grandfathered in to local regulations and for that reason tend to be old, and the older in general tend to require more rehabilitation.Good luck!

FTC is also more 'regulated' than other Northern Colorado communities, i.e., max. number of occupants, certain properties may also have rent control.    

Add to that the new Dodd-Frank regulations that put constraints on the owner finance part of the wrap. 

From  what I understand this is regulated by FEMA, does anyone know how to get a lower rate?  

I also have to live at this residence for a year I believe under FHA regulations. 

It's not a legal/regulation question, yes of course you can.