If a vacation rental income would surpass the above total, in addition to the avg interest gain her 401k is currently making then I would say go for it.

You will have selling costs and taxes that are not worth selling in such a short time, in addition I assume you are in the game to build wealth, keeping this asset is a fantastic foundation to build on, don’t cash out and start over.

You are getting solid advice here from Edward, Doug and Joe.An additional way to how Joe suggested to receive 'rent credits' , I also like closing costs. 

I appreciate any additional resources and oportunities. 

If the value is there to cash out more than you have into it, then you can balance how much additional cash you want vs. your cash flow comfort level.

This is now cashflowing another $300 a month, which you can either pay to your loan or use towards your next investment.....you continue to repeat this process.The difference in doing this vs just focusing on paying off your loans in the next 5 yrs and then starting to invest (It will be 7 yrs before you can start investing because after your loan is paid off you will then need to start saving for a down payment in order to be able to invest), is that it may be better to have 3 investment properties which are paying your student loans and providing some additional cashflow and still having your loans.

Any additionally information would be great.

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Additionally your tenants should be reporting the dogs for barking.I would not hesitate to report the situation to authorities, dogs are a serious concern.