My biggest question is this: do you think I should continue to rent for now and prioritize tackling loans?

I just want it to work and be a positive experience because I know that will keep me motivating to continue investing and building my portfolio.

We’d like to continue with this project remotely, but the idea of managing contractors and overseeing a renovation from afar feels a bit daunting.Have any of you undertaken a similar project?

Realistically you would expect the house to continue to appreciate during that time as well... even if at 3.33% appreciation - that is another $50,000 in appreciation you would make in the 3 years - give or take.  

Or is it better to capture all the rental income while continuing to pay my current rent at $500/month?

They cannot continue a lawsuit on your behalf if you have not authorized it.I would send them a short demand:"You have five business days to stop the lawsuit and turn over all documents, funds, and anything else pertaining to my property.

Another thought if you have already been in the house for a year is to continue to work on it, add more value and then sell it after two years so you can avoid the capital gains.

This area is going to see tremendous growth as the city of Bryan continues to expand on its Midtown plans.

Now they continually ghost me. 

Demand remains strong and rents continue to climb.Great place to invest in rental properties!