If you are on the fence with the above, then you should sell now as you enter the spring market.

First priority would be to market and sell this for top dollar.

Charges for marketing pics, 3-D Tours, Floor plans?

Do you know the other markets well? 

Most likely the new lender is going throught the foreclosure process and typically will end up taking the property back.The original posters chances of getting this property back now is slim to none as it will be sold at market value.  

By the time I launched, I had already established a solid reputation in the Cincinnati market.

I am now looking to enter the Chicago market, I have heard good things about that market.

While your exact cost will depend on your market, I have a GC client in Columbus OH that is building triplexes at just under $200/SF.

So if this $330k puts them close to the limit, and the market makes a downturn, there will be a margin call.

As for by-the-room rentals, many lenders won't allow that and if they do, they qualify you off of the long term market rents (which, as I'm sure you can imagine, would be considerably lower than the actual per-room rents).