So he's cash flowing well on it, he's acknowledged that my situation will be different so I might need to raise rent.3) I think these are all valid questions, but the owner raised these himself too.

The delay in the foreclosure may mean a few different things.

How long it takes to be financially ready is different for everyone.

Are the requirements different if it is a LTR instead of STR?

The financing and management of each are very different.

Then we keep the accounting straight via Quickbooks with each unit a different Class.

As far as your primary residence, if you have lived in it 2 out of the last 5 years, you should not have to pay taxes on capital gains (difference between what you paid for it & what you sold it for) up to $250,000 if you file your taxes as an individual and $500,000 if you file jointly with a spouse.Just a disclaimer, I am not a tax professional.

But you have a few different options.

I'm just trying to understand typical STR appetites, understanding the overall ROI may be different in this particular market. 

Because when a hot deal comes up and you need to close fast, that relationship can be the difference in scoring the deal.