Regardless, you sort of need to take two steps at once: A) talk with an attorney to understand your options and nuances of those options and B) start having conversations with people you might think would invest with you to understand if there is any real interest, what they are looking for and if you can realistically offer that to them with what you are doing.Once you have that, then you need to understand underwriting with investor capital, proper fees and profit splits, taxes, reporting, etc.

They found me options and opportunities that I could take action on.  .   

They currently pay $1350/mo for the rental.Are there any creative options for making this work or something we're missing? 

In short, the S-corp election is made at the entity level, meaning you have a few options.  

And while there IS free training sessions at KW, a lot of the good stuff costs money and is why their business model is so successful.Good luck with whatever you decide and I hope my points gave you some more to think about and to look into more options than simply those two.

You might also consult a lawyer to see your legal options, for use of the property and what kind of signage you should post.

They charge 8% and I have the option to self manage in the future but I will keep it as is for first year. 

This won't allow you to access much (roughly $30-45K depending on lender, I use CUTX) but it's still good to have that option available if a great deal comes up. 

The market is flooded here but I was born in Pensacola and have been considering trying to enter the flip/ BRRR market option in north/ central Fl.

If not, you would need to structure a creative deal by purchasing subject to the existing mortgage.And if taking over the mortgage is not worthwhile due to the condition of the property, your last option would be a short sale.Before structuring a creative deal, make sure you are guided by someone who has done it before.