Future tenants would likely appreciate the extra storage, and it could make your duplex more attractive in the long run without the hefty upfront investment that a full conversion would require.Another idea is to repurpose the shed into a functional office space or a private workout area.

Although your reviews won't convey, the buyer can have some peace of mind that with future revenue that the first couple of months mortgage are covered while they make adjustments, build up some reviews and work out any nuances they need to.

How did it work out for you?

They gave you two options that both work out great for them and are not ideal for you because they are a bank.

What can you rent the property for as  long term rental in the event that AirBnb doesn't work out? 

I hope things work out well for you.

If the MTR strategy does not work out you can still keep it as a LTR. 

I'm a little intimidated to choose my own crew, but it might work out for the best. 

- My opinion is you should try to negotiate a compromise with the seller and if that does not work out, sue in small claims and hope for a positive outcome.  

It can work out great for both parties when set up correctly.