Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Insurance typically covers only the directly damaged area, not undamaged flooring, even if it's continuous.

Is $107k your true net, or do you have any other expenses (mortgage, taxes, lodging taxes and fees, insurance, utilities, landscaping, WiFi, etc.)?

Insurance right now is wild, so I'd get a solid broker on your team - I'd be happy to share my contact if that would help.Also, aren't most of the existing insurances shared on the OMs for the properties? 

I also assume you have homeowners insurance rather than landlord policy which is invalid if you’re not living there.

This is the best way to start hands down.However, there is the initial VA mortgage insurance fee.

Let's assume your expenses (mortgage, taxes, insurance, maintenance, vacancy, etc.) comes to a clean $600 and the property rents for $1,000.

If the sofa bed issue becomes a recurring theme, you could look into adding extra cushioning or replacing it with a more comfortable option, as some have suggested.For long-term stability and minimizing turnover, I’ve had great success with a hybrid co-hosting model—marketing listings to insurance and corporate partners for mid-term rentals.

The longer the project takes the more risk you have from interest cost, insurance, property taxes and the market changing. 

Plus by going with you, they won't have the benefit of an agent's errors and omissions insurance, the support of their brokerage, and the experience an agent has in protecting their clients from everything that can go wrong in real estate transactions.