I owe $40K on the loan & it has a high adjustable rate of 10.5% & rising ( started out at 8%).What I'm wondering is if I should sell or keep the property.

You get easily 5,25% with short duration bills that are highly liquid, without risk, and no tenant troubles.

You get bad MTR tenants by setting your price too low and max guest count too high. 

The cost of entry is low, and cash flow is high.

The cost of entry is low while the cash flow is high.

Some people doing this strategy will rent STR in seasonal markets when there's high demand and high turnover and then pivot to midterm during the off season.

Buying real estate is highly emotional.

It’s very hands on for most owners (high turnover employees  and employees stealing bc of cash sales) so as long as that’s something you’re willing to do it’s likely a great option for you. 

If I was you, I would work on paying off that credit card debt, before you get into another large debt, especially if that $7k is high interest debt. 

That isn't enough equity to move the needle now and since you are on a 5.75% FHA, your payments are probably still pretty high comparatively which might cut the ability to save more.