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

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

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.

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.

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.

Also Solo 401k could be a better option for you if you're self employed with no FT W2 employees.