The financials of the property and applicants investing experience / credit history will factor into the proposed terms for the purchase. 

To top it all off after I sent in my information and statements I never got a terms sheet I was promised, just an invoice for 700 dollars payable to them from a link that they provided for the background check and appraisal.

Hi Chandana, More information would be needed to determine if this is good terms or not. 

Today I was approached by someone who is offering me around $1800-1900/month to rent the property from me to run a short term / medium term rental out of it, primarily for traveling nurses or other business people.

The Programs includes or covers:- Up to $2.5B in second loan purchases- A maximum programs duration of 18 months- A maximum loan amount of $78,277- A minimum seasoning requirement on the first mortgage of 24 months- Only for Primary ResidencesThe effect of a guaranteed government backed second mortgage for homeowners would be significant and likely put eligible second mortgage terms in line with below market FHA and guaranteed first position mortgage rates. 

I live in New Jersey and would like to make this a medium term rental.

If the rents have rebounded or are way above the last major downturn then whatever you are experiencing is most likely a short term blip and you should "buy right" and ride the wave back up. 

It's essential to assess whether current prices align with your budget and long-term goals.

Personally, I love Sherwood Forest for long term rentals, but there are tons of other great neighborhoods to invest in. 

I have 2 rental properties.The First is in Crestview FL with a long-term military tenant.Cashflows ~ $800 monthly.Mortgage is $180k.