The Garage was a hair salon, and the house served as a Day Spa with massage therapy and sauna.  

I have a spreadsheet I use that I massaged for exactly this purpose.

Yes I am extremely happy,one thing you need to look for in Memphis most people are poor so do not buy high end Homes gets something around 50 to 60 k I think that is the sweet spot .if you want the name of the company send me a privet massage thanks

Turn it into artist lofts, do some sound proofing and maybe band practice rooms, people looking for storage for collections, small office space for massage therapists, etc.Easy long term rentals, especially if you are under local rates.

Also, this lease will have been added to time and time again over the years and massaged to best fit the local courts and rulings.Don't risk issues with your several hundred thousand dollar asset with a .02 cent lease. 

This would save us probably $500-$800/mo.With all these monthly expenses set aside, is it bad to 'massage' the numbers even if I'm willing to manage the property on my own since that alone is 10% of rental income?

There also are going to be some banks that refuse to be creative and have a very small box and other banks that are up for being more creative, massaging their LTV, changing their rates if you will shorten your arm, etc.

I would play around with changing your minimum night stays to at least 4, using surge pricing on the weekends, or using something like PriceLabs "mid-term stay dynamic minimums" to massage the booking tendencies here.

I am also a massage therapist and have a private practice out of my house, so this isn't new territory for me either.

They don't work a "job" so they have the time to source the best foods, get 9 hours of sleep every night, get regular massages, etc.