Agree that it is better to stop the bleeding, rent it at the lower rent with a term to end in a hopefully more favorable renewal time.  

@David Krulac I agree with that. we really wanted to rent here in TN, but ended up buying this home b/c we could get a mortgage for $200-300/month less than the what the rentals we're going for in the neighborhood we wanted.

I do agree with you.

Yes I agree. 

However, I have received an offer on my property from a very good and trustworthy friend that I have agreed to accept.

I agree with you on expenses which is why my offer is where it is.

First good old politicking, find all of the other owners who can vote and see if they will agree to vote with you to allow STR or even to amend the bylays. 

I agree with you on the value of the assumable VA loans as interest rates continue to go up. 

If I sign the mortgage but not the Note, I don't have liability for the debt, but my interest in the property is subordinate to the lien and so can be foreclosed if the debt is not repaid as agreed.

Maybe they would even agree to a sale price up front so you can plan for it.