And I'd definitely get that document into the hands of some good counsel for feedback on your options. 

Also, after a year, the mortgage hasn't been paid down by much, especially if it's a 30 year mortgage.The only challenge you may run into is if you purchased it using a low or no money down mortgage option like FHA or VA lending.

My goal is reviewing retirement options. 

Hey @Sundone Boutvyseth,Similar to what @Brad Jacobson said, your best option might be a secondary residence loan if you want to STR.

This option keeps the extra capacity while addressing the comfort issue.4.

We are budget conscious and don't want to spend much on the interior by going with a general contractors(that will be the last option).

Read my Utilities 101 below to see some options.

I would check and see how many 1 bed and 2 bed options there are and what they are priced at because most folks will prefer the full place to themselves so rooming 2 people together could make getting bookings a bit more difficult (not always the case but something to consider)

If you’re looking to finance a rental purchase, a DSCR loan could be an option, as it focuses more on the property's income rather than your personal credit score.In the meantime, you can get your current property rent ready while also working on improving your credit.

As far as investing in the short term I feel investing close to home (50 mile radius) is the best option because you have a superior advantage by knowing your market.