I ultimately decided that I didn't like the business model enough.

You need to define what your business model is before anyone can answer your question

I'm guessing BP model has added $500 of other expenses to get you to -$350/mo. 

Subpar management just leaves room to come in and bring the business model up to market standard revenues and occupancy. 

Unfortunately, (or fortunately, depending how u look) prices are rising faster than rent and I cannot find more properties that fit this model.

The home is essentially in good shape but dated as it's about 20 years old or so and could use some modern upgrades but it was the model home so it has features like granite counter tops, dual pane windows, French doors, etc...

I'd invest it into 4-5 airbnb properties using the Airbnb Arbitrage model with other people's properties and then scale from the cashflow going forward. 

There are other models that could work like a cooperative or even some kind of subdivision or something like that but that also can be a headache.I am generally not opposed to the idea because I think it could help some of the issues millennials are having to break into home ownership.

Just be aware that Price per square foot is not a reliable way to estimate value unless you are comparing condos in the same building or identical model homes in a subdivision.Too many other factors like age, lot size, etc throw off the PPSF calculations in most scenarios.

Chasing cashflow can have you trading long term gains for short term cash.FWIW, the "Total ROI" spreadsheet model I'm working on shows that you can make serious money even in a negative cashflow property if it's in a high appreciation area, but you need deep pockets to keep at it.