I am looking into the possibility of buying a Co-op in New York City in the near future.

What would you do in the future to deter such actions!

And with the recent laws passed by the state as recently as this week I feel there is a bright future for STR's in Nashville, though like any investment I do recognize the risk I am taking that things could turn negative for short term rentals. 

This way you can show the bank there is a larger future income stream. 

No comments on this specific issue but reading your line : The neighborhood is now trendy and property values have skyrocketed and will continue to do so I imagine.Its easy to believe there will also be future growth and then the market shifts, neighborhood etc.  

The future is almost impossible to predict and your equity growth could stop anytime. 

I will ask the lawyer in detail, what exactly they file, therefore,  I will know for future use.  

From your brief outline it does not really seem like you have decided on what you want to do in the future... 

With the purchase price of $410,000 I think Zillow have put out a generous offer to make a good impression on future potential seller.

Tax implications would be a big factor, as would the predetermined buyout(or methodology for calculating future buyout amount), but the big factor would be their desire to max out profits weighted against their desired quality of life.But those deals are almost always a result of being observant at the right place and time.