If so, I would reposition that equity into seller finance cash flowing properties or even look at small multi family where you could get a better return.

I successfully operate a small portfolio (3 duplexes and three single families) out of state and a good  property manager is essential. 

That being said you'll also need to pay for the small repairs each year and finding a handyman for the small stuff is annoying even for a well positioned property manager. 

Mainly I’m trying to avoid “aged poorly design” glassblock walls, small bedrooms, older windows (wood/aluminum, single pane), aluminum patio covers, and to a lesser extent landscaping.

Maybe it's a small town and there are very few homes available to rent and there are several families that would rent there if there were available homes in their price range. 

The terms will resemble small business loans with short term rates and quicker paybacks, but that will get the deal financed. 

Quote from @Matthew Brown: I run a small STR property management business.

At $200k I'm guessing you would still cashflow even with such a small down payment. 

We're currently under contract with a builder for a spec home + the lot next to it (so we'll have over 2.5 acres) and have discussed having him make some small changes which will up our costs a little, but definitely bring us joy.

(Then you have zero vacancy, your business controls its rent increases, etc.)Rent out the garage to another small company.