I live in New York and majority of the inventory on Long Island is too expensive for even renting. 

Look up the default risk by credit score, this information is readily available online. 

I found it researching online after many months.

When complaints were filed due to major issues raised, some states prosecuted the companies for depriving buyers of ownership rights and outright deeded the houses to buyers (regardless of breach of contract and default on loans), with huge restitutions to be paid to state and end buyers.

@Matt Wan Many lenders require wet signatures on at least the Promissory Note but if yours does not, as a US citizen you could do the entire signing anywhere on the planet with a good internet connection + mic + camera via Remote Online Notarization (RON) for less than $200.If wet signatures are required, the answer then depends upon what foreign country you are in.

Networking with local real estate groups or online forums could help you find recommendations for PM companies that have a proven track record in Birmingham 

Quote from @Reeti Peshawaria: Hi, I'm in the process of learning about short-term rental investments and analyzing potential markets, but I’ve hit a major roadblock: understanding local regulations.

For us that's 15% off the top line I definitely am not familiar with a majority of the US but why would a host take occupancy taxes off the top?

However, if all they offer is general info, I think you can find most of it yourself in Bigger Pockets and other online sources.

There is no "secret" to finding them--- you just have to search, but most major metros have them.