I wanted to start do short sales in NYC and then sell the properties to investors but I am still a little confused about the rules.

Is this just a rule of thumb?

I would check for everything like the fees you will be responsible and what freebies they give you...also find out how much freedom you have to market yourself - some brokers won't allow you to have a personal site without too many rules to make it useful for example...also check how many agents you will be in direct competition with, what training they provide...all those things make a big difference!

Here's my rules of engagement for my business ventures whether for profit or for public service and this one will be for both.

As a general rule, a property that cost you $185K and that rents for $1400 will be a significant money loser.

Does anyone know the rules on taking out a loan as a vacation home vs an investment property?

A rule of thumb is that expenses, over time, will average 40-50% of the rent.

In other words, I have heard that if a lender (bank or servicer) forecloses and regains possession, then they must keep cash reserves on hand of 30% of property value.I have also heard that the requirement to adhere to this rule hinges on the lenders standing as viewed by the FDIC.True?

I wish the 80% rule would apply but apparently not with them.

Conforming" for a loan means it conforms to Fannie Mae's rules.