I have the ability to cover all the expenses if there is vacancy, which this property has low vacancy.

I have seen far too many times where these do not hit pro forma due to unexpected problems like theft, crime, etc.And, on top of that you are not even going to be in the US and have no ability to supervise and make sure that the people that you hired (who are not aligned with you) are looking out for your best interests.

Just ensure the new loan doesn’t overextend your cash flow.The best move depends on your long-term goals—cash flow vs. equity growth vs. diversification.

It is the State capital so there is always economic development happening which drives job growth and demand for housing.

I remember seeing this method in many popular books and podcasts.However, the STR world has changed so much ever since with its exponential market growth.

It's a huge city, a lot of growth seen in that time.

I’m also interested in identifying the most scalable approach to support future growth.

.- i question your underwriting and ability to make money on a $79k purchase with $12k rehab.  

As the owner of the property that is being severely mismanaged, do I have the ability to move the money directly to my bank through government action?

Look at rent growth trends, vacancy rates, and the area’s economic drivers.