The provider I am using allows for 60 days of continued coverage once construction. 

Our handyman team of 2 are moving out of state after working with us for almost 18 years to start/continue their real estate investment journey in a more affordable state. 

You say things like "It was understood that I would continue to utilize the garage and one room for storage as I transitioned to living out of state."

Hi Randall-Congratulations on buying a rental property well back in 2020.I am sorry to hear the property is now cashflow negative $200 a month.Your question is should you sell or continue to keep it with the negative cashflow.Depends on your personal goals and if being negative $200 a month plus any unexpected repairs or vacancies is affordable to you, but if you can solve the negative cashflow by turning the property into a furnished mid-term rental, for example, your future self may thank you.To Your Success!

Living somewhere that you hate will make for a miserable real estate journey and you'll not want to continue.

And you are continuing to invest in real estate a 1031 is a good option to explore. 

If it's going to continue to be a 3 unit building, it would make sense to add another service.

Focus on cash flow to align with your long-term goal of a remote ranch, and continuously educate yourself while networking to identify opportunities and partnerships.

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

I know it seems like a tough task, but can you spend a few more months or a year while you continue to learn to really tighten the budget or find ways to earn a little extra to start from a stronger position?