Even looking at the balanced rate (which I feel like is hard because the terms are different) along with the potential to have the monthly payment/fees covered, it feels like a cash out is a better option if we did want to keep this.Part of the current struggle is that the market was hit harder from the rate increase so sales are almost at a standstill and even with trying to sell the house, the rental market is doing substantially better because most military cannot afford to purchase in this area as the payments are over 6k/mo for buying vs 3-4k/mo for renting.Any advice is most appreciated!

What are the loan terms? 

I'm sure you've seen this website, but this is the full info: https://www.savannahga.gov/1476/Short-Term-Vacation-RentalsYou could buy a property with a STVR certificate already in place.You could by on Wilmington and Whitmarsh Islands - they are not regulated yet.

We're not sure if moving out of state would be long term or if we would return after a year.

Quote from @Chidvi Pemula: I avoid smart devices, particularly on short-term rentals.

This will give you several benefits.

Term 3-5 years.Can anyone advise me as to terms I should offer (interest rate, points, fees etc) and anything else I should be looking for to make this loan?  

I focus on long term appreciation plays. 

If you throw everything into one "capital improvements" bucket, you lose these benefits.3.

There's a lot of research you could do on VRBO/AirBNB/AirDNA to compare similar properties in terms of rates and occupancy, but my experience is that Gulf Shores and Orange Beach are more popular because of the nearby amenities, nightlight, recreation, and other things to do.