You can add different ways to reach out to improve your conversion for owners you are hitting or you can increase the amount you are sending. 

With a recast, my monthly payment could drop, improving cash flow.3.

The only other option that comes to mind is to make the improvements and try to achieve favorable rental rates to push the story that 2 BR homes rent for a premium because its unique.

You would then stress to not incur any improvement cost above $22,000 or you may have to liquidate the property.In this scenariod, $60,000 if you are making an above return at 10% to 12% annually + $30,000 making $4% in a HYSA, the average return is maybe around 8%The blended return would be about 9%You may be better off investing in the stock market, get a slightly lower return but without all the added stress / work.

But for cashflow this is terrible.Comparatively speaking, I do see properties that need capital improvements.

Because that property didn't quite fit my portfolio profile, I re-sold it 5 months later for $375,000. 

I actually took a look at your profile and made some tweaks to mine. 

Gain is your net sales price minus your adjusted cost basis (purchase price plus capital improvements minus depreciation). 

Contrary to most business lending, the REI industry has a lot of "non-bank" lenders that provide attractive loans that can lower your cost of capital and improve your profit/cash flow. 

However, if you can enhance privacy and add standout features—like a hot tub or a sauna barrel—it could justify higher rates and improve guest experience.