However, we’re concerned about its current condition and whether we can sell it for a reasonable price.I’m looking for advice from experienced investors on the best course of action to minimize our losses.

I pitched this deal originally to several local investors I had known over the years, & ALL wanted to "steal" it from me.

This strategy has allowed me to save on closing costs, secure favorable financing terms, and refinance almost immediately, all while minimizing my down payment.

It’s often safer to stick with first lien positions initially to minimize risk.

Also my family members pitch in to help me manage when I’m tied up or out of town.

Minimal updating work to be done.

Seems like a not great pitch... :) But maybe I'm wrong?

Thanks all.Yes, my tenants will cover the appliances according to my new contract; it will be up to me to see if the tenant is worthwhile to pitch in.I actually already have this clause but I will tighten it up a bit.It may look silly but the new appliances are so expensive I am not willing to buy premium appliances every 5 years for my A class properties. 

FHA financing will require a minimal of a 90 seasoning period before a new buyer can order a case number on the property to close. 

If you have enough market data to support your income projections you should be good to go.Lenders don't like Airbnb's much though so maybe you can pitch it to them as a rental?