One pro of FL is that municipalities cannot enact new laws or change existing laws for rental terms, the state passed a law in 2014 to see to that.However, that does not stop some municipalities from regulating them as far as fees, inspections, and registrations. 

They made airlines stop doing it, follow up with short term housing. 

I am glad you stopped me from being lead astray with this.

Move on and stop wasting time.

This doesn't mean you stop investing in those areas, it just means you need to factor that into underwriting and be prepared for it.

Also, they began to skip payments and eventually, they stopped paying altogether.

You can't let things die and don't know when to stop.4.

The fund used to post semi-annual reports on their investor site, but those reports stopped in the middle of last year.

Please guide me on steps I can take to stop this madness.  

There would never be an issue there to stop STRs as it is a vacation resort.So, if you are looking at a condo, make sure that you do your due diligence.