Use those points for travel or fun.

They plan to sublease to professionals like traveling nurses (2-5 months) and short-term families (we're near Disneyland).

Today I was approached by someone who is offering me around $1800-1900/month to rent the property from me to run a short term / medium term rental out of it, primarily for traveling nurses or other business people.

And then we also get families visiting college students (we have 3 large ones like Duke), and tons of travelling nurses (our medical industry is large here).

The STR rooming house would work, in theory, as a budget option for traveling going through town.

Like business travel/meals, etc?

I travel there quite often to visit friends.

Or maybe have properties all over and travel a lot.

Traveling nurses and other professionals search this area often with the considerable amount of hospitals, medical facilities and corporations in the surrounding cities. 

Traveling nurses and workers in the tech hub are common answers, does your market support the demand for them?