The wise choice is to hire a professional property manager in that area until you have enough properties to justify moving someone there. 

If want more full service with good tools and minimal fees check out Fulton Grace or Exp both popular with investors.

The choice between maintaining liquidity versus reducing debt will largely depend on your priorities and future investment plans.As for subdividing or CPRing the property, there are several advantages.

Congratulations.Tough decision.I think you really have no choice but to sod at least the front.Don't use fake turf, and it isn't cheap anyway. 

I did a walk through on the property, and I think in my current market that this is not a reasonable choice for my investment money. 

What might help you for the next attempt is to read (BP's book written by yours truly--The Hands Off Investor), and network (join a community where investors discuss deals, trade advice and observations--coming soon will be Passive Pockets, an offshoot of BiggerPockets which recently acquired the popular passive investing group Left Field Investors).

Also, how much does the borrower’s track record or experience influence your final choice, especially if they've had success with similar projects?

@Greta Andrews Both real estate investing (REI) and business acquisitions can be profitable, but the choice depends on your goals.

@Osvaldo GuerraAustin, TX, is a popular destination for small multifamily properties due to its booming economy, strong rental markets, and family-friendly environments.

What are the alternative choices if you don't pursue this?