Potential asterisk on pulling that money out of the S-Corporation.The benefit of not having real property in an S-Corporation is flexibility (don't have the same deemed gain rules if pulling it out of a partnership), basis in the debt (in your case you don't have any debt).You could still end up with some double tax on this. 

It's all about the team you have in place, in my opinion a true turnkey rental is one where the provider purchased the property with their own money, did the renovation and own the property management company on the back end.

I am currently in a very high interest hard money mortgage that balloons in September 2025.

So the tenant used the Pauper's Affidavit to appeal claiming they had no money correct? 

This becomes especially critical in the current environment where you can earn 5% on your money easily and aren't tying up cash until the project is completed.2.

I am trying to raise money from Friends and Family for putting together the down payment needs.

I am also an investor that does flips, has rentals, lend my own money, has owned STR and have been a member of the local REIA for over 10 years, So hopefully my experience and network of other investors could prove useful in evaluating the potential of the property and possibly attract a partner if you need. 

Yes, you may lose some established snow birds by changing terms and prices, but if you are losing money you are better off without them.

Lastly, California is very over priced in most cases so keep in mind buying out of state is not hard and can save you a ton of money. 

Some other pros and cons but could keep that money liquid and flexible.