One option I'm considering is adding the equivalent of a camelback, or second story over one side of the home, adding ~900-1000sqft and 2 or 3 bedrooms. 

I want to know the options and you are certainly gave  me good info. 

There just aren't a lot of options in my area, and my kids need to live close to their dad. 

That is crazy high occupancy but they cannot afford even the high occupancy options (in this case a 3BR unit).

You can do a trial and see if bank feeds connect, if it does, I would then recommend using it over QBO.One of my client that just started in development is short on funds so Xero was the only best option and they are using a local bank so we couldn't connect and a lot of manual entries. 

Have you considered the idea of house hacking as an option?

I'm currently in the option period with it ending on Monday so I need to make an educated decision by then.

When I start to post, I don't see "furnished" anywhere as an option for listings.

That would be best option as a traditional bank wouldn’t do this I read that I can assume the existing mortgage.

On VRBO, when we set up the listing, they didn't have a "loft" option, so I think it's considered office space which led to some confusion or set up as a second living area.