I would manage it as a VRBO property, convert to a traditional mortgage within the next two years and make aggressive payments to cut down on the principal as quickly as possible.

What about the portion of the payment that goes to the principal ?

Your PITI (principal, interest, taxes, and insurance) are eating up 87% of your income every month. 

NONOPayment Calculation Years 1-30 Principal & InterestMortgage InsuranceEstimated EscrowAmount can increase over timeEstimated Total Monthly PaymentEstimated Taxes, Insurance & AssessmentsAmount can increase over time See page 4 for detailsCosts at Closing Closing CostsCash to CloseCLOSING DISCLOSURE$836.31++--$836.31This estimate includes In escrow?

So for instance if I as a principal broker get it all and make 100k a transaction then it doesn't make sense to take a referral where I make only 65 or 70% instead of 100.

@Dennis M. it's two properties, two principals on a five year note.

The Principal and Interest for the mortgage is $292/month.

All of my sfrs have cash-flowed less than $100/mo, but I paid less than market value, the principal paydown was much more than $100 each month and they've appreciated nicely.   

My realtor mentioned that once they clear that number the leftover money may go back into my principal but he wasn’t sure and my loan originator told me she was also unsure but she did say that banks can’t profit from a short sale.

Are your rental loans 5 year loans or are you just paying extra principal?