Natural disasters and requirements for 100% hurricane coverage have had a dramatic impact on HOA's insurance costs, and also affect Buyers due to lending requirements. 

You could probably afford $20,000 without much impact on your budget.

I am in a pretty similar position. 

@Kyle LipkoRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

The replies above answer your question in terms of furniture impact.

For co-living spaces, it’s important to confirm that lenders are comfortable with the unique rental model, as it can impact property valuation.

Glad to hear you haven't seen any impact on leasing! 

As for structuring the deal, proposing to buy the single-family in cash with an adjusted purchase price could be a win-win, especially if you frame it as maintaining the seller's cash position for their settlement.

Hopefully, you find it helpful and qualifies us to assist you with your goals:)---------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

To make the most informed choice, get a Cost Seg feasibility analysis (free) which illustrates the expected tax deductions and then assess how those deductions impact your tax liability, based on your tax profile.