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

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

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

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.

And I would constantly bring up that I would love to buy the property he was living in.

Understanding what’s going on out there is so important, and your perspective helps bring awareness to thatI 

I will bring this up to my PM as a ticket item nonetheless.

Bring your $25k + hustle and they would bring some cash + experience.