It currently cash flows $300 a month on a $1200 a month rent. 

When renting to travel nurses for 3 month periods, are rent payments considered earned or passive income

She has extended 5 months of grace and meds to take some action.

I own 5 properties in Morningside personally and am closing on a duplex there next month.

If you find a property in a good appreciation area your appreciation will far outpace the monthly cash flow.

So if the sponsor bought a deal 8 months ago, they should know what they projected for month 8 in their underwriting.  

I would prefer to self manage to avoid the high poperty management fees (I think its around 10% + 1 month leasing fee, etc.) and I also worry that the property manager will likely not be as dilligent in finding high quality affordable vendors, etc.I see 4 major pieces of work1) Tenant finding: I feel comfortable doing this remotely.

Regarding your question, DSCR lenders are funding millions of loans a month right now- it's not hard at all to find a DSCR lender. 

I'll be in Hawaii next month to visit her (she's having a baby in June)best

Issue is that if I refi at 175k value I will be way into the negative cashflow, like a couple hundred dollars per month negative.