I'd bring island out a little more. my advice is make sure all rooms are 110 sq ft minimum. some of these look super small. we build a very similar one in our market.

I don't disappear when things get hard.Luckily, the investor/seller agreed that adding a fence and some other things would bring the property a better sale price.Not all agents are experienced, and not all investors need an agent.   

We only bring in about 85k-90k total and we are really frugal. 

You could bring less down and possibly have a lower interest rate since you will be living there.

Our project we are bringing to market will have taken us 2 years from buying to offering.  

Focus on long-term guests, like corporate clients staying 30+ days, because it’s easier and brings steady income.

So you'll need to bring your own money to do that.

If you'd ask this question while still employed I'd say apply the $8500 toward knocking down the debt quicker but since that is not the case I would build up your reserves to about 6 months then begin applying those funds to bring down the debt. 

We are considering stepping in and trying to buy the place, but looking for some guidance on STR and what kind of money this place can bring in. 

And this brings to mind @Collin Hays post recently on firing dynamic pricing:https://www.biggerpockets.com/forums/530/topics/1227948-i-fi...Timely and thoughtful, I'm still reflecting on it as there are actionable implications there.VRBO might not understand now.