While you may not have wanted this thread to turn into how to pay down debt, I believe that's what it should turn into.

I turned it into a 7 bed house.2 of the new rooms are super useful to an end buyer and would bring us to a total of 5 (which would comp very well).

A non-performing note is unlikely to produce cash flow but profit can be harvested from enough protective equity.

A few months back, I worked with a friend who’d helped a first-time flipper in Jonesboro turn a crusty old single-family place into something that looked straight out of a design magazine.

I dont see the floor plan but maybe if you turned a bedroom into 2 bathrooms and connected them to the adjacent units that could work very well.

I have an appointment with a land attorney late this week and now will be getting a significant legal bill out of all this as it will turn into much more than the cost of a consultation.

The agent in turn also knew good lenders that worked with investors, so that's a good starting point.Good luck!

Quote from @Matthew Samson: We plan to turn our current house hack into a long term rental.

This in turn could turn away buyers/delay possession to a buyer who wants the home delivered vacant. 

As I see it in the current market, STR is now a way to get a really good, appreciating asset to pay for itself, not a way to produce a meaningful amount of cash flow after all expenses.