If they are a small bank and have say $1.5mm limit does that fit you for a while?  

You as a home owner can use the proceeds as you see fit.

The good thing is there are so many lenders available, you just have to vet and research what will be the best fit for you. 

For an SBA hotel loan, the SBA may guarantee say 30% of the loan and a traditional bank takes the next 50%...total LTV/LTC of 80%...will vary by business but it's higher/better than the previous replies (otherwise, you would just get a traditional commercial loan without the SBA involved). 

We are both 28 years old with zero experience prior to getting involved, she works for the business now and I work Blue Collar in the trades. 

Should I go through with taking ownership of the property and try to salvage it for profit or do I refrain from even involving myself in the situation as it may cost more than it's worth to save it?

In rising markets, you might want to hold onto some properties longer to maximize your returns.By focusing on these areas, you can build a solid foundation for a scalable distressed property investment business and navigate the transition from individual deals to a thriving operation.ConclusionScaling a distressed property portfolio involves more than simply increasing the number of deals; it requires a fundamental shift in the way acquisitions, financing, and operations are structured.

Then there were some issues with the inspection report that ruined 3 contracts prior to me getting involved.

Talk to a CPA to see how it fits your plan. 

Back then, the market was more stable, interest rates were below 4.5%, and distressed properties sold at significant discounts.Today, distressed properties often sell at a premium, and cash-out refinance rates are above 8%.The best BRRRR deal I can find today involves buying a property with cash, investing in the rehab with cash, pulling out 75% of the ARV and breaking even on rent and mortgage.