Have you considered the idea of house hacking as an option?

I'm currently in the option period with it ending on Monday so I need to make an educated decision by then.

On VRBO, when we set up the listing, they didn't have a "loft" option, so I think it's considered office space which led to some confusion or set up as a second living area.

When I start to post, I don't see "furnished" anywhere as an option for listings.

That would be best option as a traditional bank wouldn’t do this I read that I can assume the existing mortgage.

Also Solo 401k could be a better option for you if you're self employed with no FT W2 employees.   

Other than Regus there are very few options. 

The property is rented out for $3,200 per month, while my mortgage is $2,100, and the HOA fee is $268.I explored the option of taking out a second mortgage.

But Lo and Behold, you will have state regulators and prosecutors, coming after you, painting you as a Devil incarnate to make some headlines and parade themselves as protectors of poor home owners, who are set up and guaranteed to lose their homes when they have no options to reinstate the loan a day before auction. 

But there are options for interest only first five years.