Quote from @Kmsuea Abdei: This used to be a state requirement, some states required it, and some brokerages required it.

I could be wrong but I thought I saw that Sacramento requires primary residence for the owner for STR.Do you live in Sacramento or nearby ?

Unfortunately, my service was cut short due to an injury during deployment, which required spine surgery.

If the property is not cash flowing and is due to your mortgage carry, it will most likely require a cash buyer to work (or close to it). 

Converting the partnership into a Tenancy in Common (TIC) could work, but keep in mind this requires dissolving the partnership structure and redistributing ownership, which may have tax implications depending on how it’s handled.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

A "lake house" might be in a residential zoned area where a commercial use would be prohibited or at least require a variance (approval) to make an exception.

Does the contract require arbitration or remediation?

It may not be required, but we are generally in a better place to absorb the loss than our tenants.

Follow the exact legal requirements of your state.