Keep the current investment and buy another house hack to live in.

I live in SoCal so if I wanted strong cash flow I would likely have to look out of state.

I am from Phoenix but lots of family from the Seattle and surrounding areas.My wife and I have been doing live in flips since 2019.

I wanted a house for myself to live in and I had been living with parents for two years to save money.

You should vet the company to ensure they have the resources to pay the rent.You ALWAYS do background checks on the people living in your property because if you let in an axe murderer and they harm someone, you are likely to get sued.Whether or not you charge an application fee is up to you.  

A few years later, I hired a local Wyoming attorney to create a living trust.

House Hacking using the VA loan to live on one side while renting the other is great.2.

However, if it is an STR, the depreciable life would be 39 years.

I have family that lives in that area, and doesn't think anything of it, but not somewhere I would want to live with my family.

If you can't find people to live in the house, that's the risk you have to take.