This interior change forced us to consider the short term rental market and how it could actually be a desirable feature for this market where a group may be interested in renting both sides like adjoining hotel rooms.Our total cash into the renovations was extensive ($95,000). 

I don't know if that is possible/desirable for you. 

My desired outcome would be to have them exit the property as fast as possible if they are unable to finalize the sale.2.  

If you are both agreeable that she has moved out then take possession and do your turnover work...I would go as far as offering her "fair market value" for her possessions so there is no desire for her to pursue them...then you can trash them or whatever....it sounds like you are self-imposing some unnecessary obstacles...

The area is very desirable, it's like the Orange County of the city. 

We find that in the lower price ranges or in the less desirable neighborhoods the chances increase dramatically of a tenant skipping out. 

Is there anyway to calculate the end investor's desired yield of 8-14%?

Sometimes low cash flow is worth it if the area is really desirable and you will get paid on the appreciation. 

I have three furnished rentals in very desirable neighborhoods @Daniel Crenshaw I am very thankful that each of these furnished rentals are in a building with another unit, with regular tenants. 

I have no desire to lose money monthly to gamble on appreciation, if I want to gamble I'll buy a lottery ticket.