However, I am still very hands-on for my management business, typically logging 80 hours a week between my two jobs.

@Marcus Stokes, house flipping is a full-time business operation, even with current market conditions.

My point is this, I am actively involved/advising this investor, providing local vendors contacts (handyperson, surveyor, painters, etc) and I "don't wait for them to call me", I call them weekly. 

Unlike refinancing, which involves taking out a new loan, recasting keeps your existing loan terms—including your interest rate and loan duration—intact.

There is so much MORE work involved as opposed to buying a fixer-upper and rehabbing that!

According to the agent involved in the deal, they think I can get these numbers...

Additionally, involve a real estate attorney to ensure the transaction aligns with legal requirements and protects both parties’ interests.

Continually communicate clearly with all parties involved to make sure that expectations are as close to realistic timelines as possible.

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?

Or like many small in businesses you raise cash from friends family and anyone else that knows loves and trusts you.The other thing I suggest is to make that $27,000 or $37000, or $50000 yourself over the next year.