I don't agree with your lender that you have to live in the property if you are using a conventional loan, but depends on what product they are giving you, maybe a work around for that.I would not purchase based solely on what income you can derive from STR.

I am new to RE and would like to hear from seasoned members who have either been in this shoe or who are well versed with this situation. 

Given these numbers and solely financially speaking, should I sell or hold the property?

Drawing money from an LLC for personal use can be done as an owner’s draw (for LLCs taxed as partnerships or sole proprietorships) or as a salary/distribution (for LLCs taxed as S Corps).

I'm in the same shoes you are and I'm looking for sponsors also.

For example, when I take on a rehab I typically deposit the budget into a separate checking account solely for that rehab and pay all the rehab expenses from there making it easy to identify in my bookkeeping.

I’ve educated myself with books like Rich Dad Poor Dad and real estate podcasts, and I know I’ll succeed.I’d love advice from others who’ve been in my shoes: Is it okay to start investing in a different area if one strategy isn’t working?

That said, if you were in my shoes would you advise looking into syndications or trying to find deals to buy and hold myself?

Somehow, a quitclaim was made from the sole heir just 5 days before  the tax sale - and recorded in the deed book the day after the tax sale.  

I can sort of afford to not make a ton of money on it but I am taking care of my husband who had a stroke and I am the sole provider.