If the assets makes financial sense to keep otherwise, hiring a PM solves your problem and allows you to keep a performing asset.

I can count on one hand the number of times I've seen subcontractors on those job sites performing work.

You have to properly vet and perform thorough due diligence (which I didn't do a couple years ago when I first jumped in).

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – so, they often select the first PMC they call or that calls them back!

Is there a move here, could you try to buy the non performing note?

The Cape also in my opinion is oversaturated with STR's so it's challenging to find a base number of how your property will perform. 

Again, these are normally in the lower tier  neighborhoods that rarely perform on resale as their appraisal may suggest.

What is the experience of the group at performing this sort of development?  

I'm wondering which company buys performing loans and what hurdles I might face?

These people are built to value add deals, you would have to look hard for these people in your market and probably pay them top end pricing to get your properties performing amazingly well!