I also took their abandoned newer furniture to my rental so that I could charge $400 more a month for my furnished house.

The company line is simply: We cannot evaluate you as a tenant until you see the unit, complete the application form (which has a space to furnish explanations of anything you believe needs context) and pay the application fee.

All that said, this is exactly why I am currently doing furnished monthly rentals on a unit since I do want to add an ADU to the property.

The only way you could get to 3 quality STRs with that $80,000 is if you use the BRRRR method and execute it absolutely perfectly. and get all of your capital back + some extra to cover furnishing on every deal.

I'd offer different packages, such as purchasing furniture and supplies, doing actual set-up, refreshing an already-furnished rental, doing marketing, etc.

I provide a nicely furnished condo, cable and WiFi.

My leases clearly state that the "Tenant shall maintain all appliances, equipment, furniture, furnishings and other personal property included under this Lease". 

It would also cost about $5k per unit to furnish it - this isn't that big of a deal but it is worth considering.What would you do?

I'm out state investor so I didn't not fly there to do the tour which was my mistake to make this decision. because the one furnished and water heater it's not up to code.

This implies our unit’s cash flow is below if it were an LTR because 1) we pay utilities 2) we furnish the unit 3) we pay MTR  PM fees which is near double the LTR rate.