Should I go through with taking ownership of the property and try to salvage it for profit or do I refrain from even involving myself in the situation as it may cost more than it's worth to save it?

They unleashed pandemic handouts and loan programs that greased the economy (this was not well thought out, contributed to the inflationary environment we are still suffering from and PPP and ERP loans were flooded with fraudulent loans and benefits)These programs leveraged existing corporate infrastructure (banks and the government had little or no operational involvement). 

First mortgages involves loss mitigation (occupied 1st) and asset management (vacant 1st).

A good lender should be able to piece together a strategy with you, whether that's cross collateralizing or not, underwrite each option with conservative numbers. 

Two flats are essentially just houses.... they trade like houses and there is a lot of emotion involved.

What I don't like is seeing the removal of peoples options and freedoms to self select and engage in what they want to do. 

My budget will be around $200k but I’m meeting with a lender on Tuesday to go over all of my options.

Like Jay said, there can be more flexibility in repayment options. 

Are there going to be banks involved, creative seller financing or all cash? 

(This option would would not carry any debt, all debt would be paid in cash)Or keep our current house, rent it out, and cash flow NET monthly about $1,500?