I would restate that the lease will remain in place until such time that a new tenant is selected and moves into the property.This approach will ensure your cash flow while acknowledging that 'stuff happens.' 

I am considering converting to a long term rental but thought that mid term might also be a good approach as well considering the home is fully furnished.

Does this approach seem reasonable, or am I undervaluing the property?

My thoughts were that Miami has every sport possible, which drives traffic in.

@Elvon Bowman Thinking big is important, but it's also helpful to take a practical approach. 

I take a methodical and pragmatic work approach. 

This approach could keep things straightforward while accommodating their need for housing.

Then if/when another good deal comes up, you can approach a lender and look at leveraging either of the properties in order to fund the down payment of the new property.

So I said, "well, if that isn't the path, what is the better approach?"

It's all in how conservative you are in your approach to underwriting your deals.Even when a Seller says they've improved the property, the tenants are still tenants and do damage to brand new improved units.