My idea to achieve this is to convert the studio into a short-term rental.I’m trying to determine if I’m forcing this deal to work by relying on the short-term rental strategy or if it’s a reasonable approach given the numbers.

What about rate and term refinancing?

Quote from @Andrew Lawlor: I've been actively investing in short-term rental properties for the past three years, managing one live property and another that will go live in two months.

@Justin FondrenIf your credit score is in the 700–730 range, you're in a great position to secure favorable loan terms.

What are your Loan terms and P/I relative to the cashflow after taxes?

Time allows for adjustments, scaling, and reinvestment in ways that short-term projects simply can’t achieve. 

investors can figure on 10 to 12% return on PMLs   generally they are short term 6 months to 18 months.. in my 40 plus years at PML I find most investors started as landlords then tire of it and start to diversify.

The loan has come to term and they can’t maintain the property and the current interest rates.

If it's long term and you have control of the lock then you can do the same.

We're also able to evaluate our rates, and keep pace with inflation, on a monthly and quarterly basis because of shorter term leases.