The whole thing seems odd, some people aren't great at responding to leads.

One thing you can do right now: create the Furnished Finder listing with unfurnished photos, mention in the description that the property will be furnished soon, and start fielding inquiries and watching the unmatched leads section.

Also the 1% rule is about as good as the rule thumb and not based on current conditions or current data. 

Hi All - I found a lead on a MFH (5+ units) that is a short sale.

They are either landlocked or the road leading to it and often than land itself sits inside a dry creek bed known as an arroyo that floods whenever it rains upstream.

If the seller misrepresented tenant conditions, consult a real estate attorney about potential legal action.

Our current economic conditions are challenging for cash flow in most markets, but I wouldn't let that stop me from diving in. 

You may end up needing to go through the whole foreclosure process which can take a lot of time and cost a lot of money, and you may end up getting the property back in much worse condition than when you sold it, potentially with a squatter in it and months of lost rent, and in a worst case scenario you will be in a much worse position than if you had just sold it outright. 

This also leads owners to ASSUME simpler is better when it comes to management contracts.

For example a price below where I think it will sell for, attracting more Buyers, but not too low where I'm doing unnecessary work filtering out Buyers who don't understand the market conditions.