This also leaves me with $3,750 stuck in the deal (not including financing and closing costs, which could easily add another $20,000).In total, if I had to include closing costs and financing costs, I’d have about $23,000 (if not more) tied up in the deal and lose close to $700/month before accounting for expenses.

I understand why this is the choice asset for many: they are inexpensive with no barrier & easily financed (easily attainable). 

these issues are easily fixed by just putting more cash into them up front so your not having to feed them at the back end.. or better yet pay cash for them.  

(We had a boat as an AirBNB and the plumbing would clog very easily and we had to state a similar statement and it got us out of refunds and bad reviews) hope that helps! 

Your biggest challanges:1) Figuring out how to advertise on Zillow2) Handling all the calls3) Scheduling showings - and getting stood up4) Finding a rental application to use - you can use Zillow's or easily Google for one.5) Figuring out how to screen applicants ***** This is IMPORTANT!

Sounds like an easily executable deal from what you've stated but likely need more color to offer path forward, terms, etc.

I would definitely speak with an attorney before selling/disposing of the property prior to the court addressing the joint assets - you could easily open a can of worms.

As others have noted above, you could easily get overwhelmed if you try to self-manage.

My other SFR notes have interest rates determined by the borrower's cash, credit score and income - so market rates or higher.I understand the difference in performing vs non-performing notes and that performing can become non-performing pretty easily. 

Once you complete and rent/stabilize, you should easily be able to get into a DSCR loan.