Even though I don't think there's a way to get out of this without taking some sort of loss.    

Interesting article about how the STR market may be doing nation wide.https://timesofindia.indiatimes.com/technology/tech-news/airbnb-may-have-just-told-the-worst-that-many-have-been-fearing-about-the-us/articleshow/112363488.cms

I know everyone wants to sole own every investment but it seems you have a great property and having a partner to do it with might not be the worst idea.

I think the middle road of trying to do both gives you the worst outcome (tenants damaging your property, lower price because it’s no longer new construction).Best of luck whichever path you choose.

If you don't plan to stay in Utah beyond two years, you'd definitely want to make sure the numbers make sense to at worst break even once you move out.

Very true, and a lot of lenders, especially like fix and flip lenders have sort of a "loyalty program" where more deals equal better rates and better leverage. 

He said he was in some sort of bind.   

Hostile HOAAnd of course financing.. what if you need off site improvements how are you going to pay those is the local jurisdiction going to help or you have to pay it.. or can you do an improvement district with some sort of bond act.

There will need to be some sort of established history (rental income and operating costs) in order for a lender to calculate the income.  

Although the odds of something bad happening are slim.....stuff does happen.If you could find out who is in charge of this you could at least sign sort of agreement regarding liability....?