We were informed that the property still has a mortgage of around 80k and the ladys children plan on letting the bank take the property.

Next year, I plan to purchase a second home and move into it.

For instance, things like death, divorce, job loss, natural disasters, heath issues, etc may cause you to change your plans unexpectedly and may change what you do with your home as a result.

If they talk about "halting distributions" to investors to focus on future business growth and profitability, what is their actual business plan?

If it is a cash out refi, what is your plan for that money? 

Quote from @Justin Hammerle: @Thomas Lebens - if this is your first property and you plan to occupy why not consider an FHA?   

For the experienced cohosts in the group, I’d love to get your thoughts on payment processing options for cohosting companies (LLCs) that position themselves as property management companies but operate without a broker’s license.As an investor and soon-to-be STR entrepreneur, my business will initially focus on managing a small portfolio of vacation rentals with plans to scale. 

I have not yet, but plan to!

Secondarily, LLC ownership is very helpful for business planning.

I currently live outside the US and am planning to move back in a few years.