I know I could establish my own business and make my ends meet until I am able to optimize and begin figuring out how to increase my income, but once again, it comes down to me not know what path to take and where to get started.

It did $82k in gross revenue last year with property management, poor listing optimization, and 30 days of lost revenue.

What I love about this is, as long as they are truly people I want to keep around, I'm creating a menu of options that are all fine for me.  

A LLC taxed as a S-Corp seems to be ideal for tax reasons, does there happen to be another entity that can optimize tax implications further?

How's that for optimism - LOL

Take the one with the optimal balance between the highest IRR and equity multiple.And don't trust realtors, they just want to list your place.

Most likely, you wouldn’t want to move your own family to the area where you will own investment inventory, but reality invariably dictates that your optimal risk/return plot on the investment frontier exists in a geography that may initially evoke a sense of discomfort.

I think your first order of business should be getting that debt eliminated, and optimizing your finances.  

Okay now if you have the debt this isn’t just comparing two investments this problem becomes optimizing a portfolio the answer is simple sell the house other wise your losing money every month for 10 years vs being debt free and making money every month.

I'd suggest taking a look at the No Money Down book under the Education Menu on this site.