I am confident nothing goes to the senior as they still have the senior lien.

That is YOUR NAME on that TREC contract, and either you care about that or you don't.Get the money part figured out, and then go make offers with confidence.  

Also this is the most (insert slur for a wimpy person without confidence) way of doing business.   

Short term results have been bad but I still have high confidence in the property and area.My only suggestion to anyone looking to get into the market is to do your homework, be completely prepared for some large bumps in the road, and treat everything as a learning experience for your future plans, it's tough to get it all 100% right out the gate.

But if you’re confident in your numbers (you better be confident in your numbers) then I wouldn’t have any hesitation.

I would go vacation rental if the city has anything bringing in travelers other than just the University. 

Hopefully you're able to travel to the property a lot during it to make sure everything stays in tact.

I have every confidence that I will make more on that money than 1% over conventional terms (just to be clear to the moderators, this is not a solicitation as much as it is to show why it is silly for the OP to not extract out to the max LTV allowed by the refi - I expect there is zero chance for the OP to take me up on this offer :=)).Convention loan terms are so low it is basically free money. 

Once the she eliminated the disruptive inmates (she inherited), managing it via social media & Venmo became the norm, (she also travels a lot with her real JOB).

There are a lot of transaction costs behind selling the property and if you're confident you can refi and still rent it to quality tenants for less than your PITIA then the risk isn't even that high.