Equity growth is the priority with mitigating any cash flow loss or optimizing the property for superior cash flow.

To give you some hope, in the mean time of your RE losses, many of us are doing very well. 

If the rent payment covers your mortgage and you have a good tenant, why would you get rid of them to take on the expense of unit turnover, because you will have to do one, and the 5% vacancy loss just to increase your rent $150 per month?

However, the Cleveland area is a net population loss area.

The biggest win or loss you are going to have on your STR business will come at the purchase. 

When i read about how their deal was really messed up with most investor probably going to take huge loss's its not shocking.. you have to stay right on top of these and have the manpower to do it.

But when a template lowball offer comes in (not sure what it's supposed to do beside tick off the seller) You won't be able to recover from your first impression. 

If I move to a partnership, what happens to my accumulated passive losses? 

It may be time to cut your losses and move on from this real estate. 

If he overestimated the value of property and can't recover his loss then it's none of your concern.