Try the following: Construction loans from a small bank can be a much better route, you will have some extra closing costs, but usually the same bank will just refinance you to a permanent loan.  

I could rent the place in the mountains as a permanent rental and get about 900-950/month in rent but for now I think I am gonna go with a property management company and rent it as a vacation rental for 100/ night.

Anything above that could start significantly (and permanently) impacting your monthly net (reducing your returns), and will accumulate quickly if you plan to keep the property for a long time. 

IO for short term rehab loans, 30 year (or shorter) loans for permanent financing.

The available cash does not include a modest emergency fund or retirement accounts.From some research, it appears I may have these options:- Hard Money Lender (or Private Money Lender)- Construction to permanent loan (not sure on DIY feasibility)- Conventional loan for house, then separate renovation loan or hard money loan just for renovations- FHA/government backed renovation loan (possibly just include "contractor" work in this with minimum down payment and then DIY  the rest with remaining cash)

With everyone working from home these days, where possible, and with the recent news that companies like Twitter are opting for a permanent remote workplace, I think it's clear that commercial real estate will be seriously impacted going forward. 

Also, after the one year of construction and interest only payments, the 4.75% loan automatically converts to the permanent 30 year fixed.We got a construction loan for $445,000 and didn’t have to put any money down since the $100,000 cash we paid for the lot was the equity.

Anyone from Illinois understands the taxes here are a pain, so at a surprisingly low $1456 per year (with a first time home buyer exemption that I may have saved for a more permanent residence, not that I had the choice two years ago) and a purchase price of $110,000 with current value estimated around $125,000 in only two years, we started off on the right foot...

They have made ZERO effort to bring a solution to the table.I'm thinking they can sublet it for the remainder of their lease term or until we find a permanent replacement tenant.  

Should I flip to a larger investor for 80% of appraised value and lose about $17000, take permanent financing and try renting it, or continue to try and sell it?