Loan had high terms of 9.5% calculated to 20 years and a balloon payment on the 3rd year coming up this April 1st.

With countless loan options, complex terms, and strict lending criteria, it’s easy to feel overwhelmed.

Will I be able to overcome it's reputation in getting mid term renters?

Once you do this conversion you can't change it back to a traditional long-term rental. 

I use this type of system in a ten unit that I own because the cost to submeter each one was cost prohibitive I usually don’t include other items like wifi/internet unless it’s a furnished/short term rental. 

This is now used as a airbnb/mid-term rental.

TO put it in terms, I got to a point in sec8 where we'd come into a unit and say "Oh man REALLY, come on, can't it just be a dead body or something" lol. 

I worked exclusively in STVR property management on the island and currently work in long-term property management servicing the West Metro (Minneapolis).

I would suggest you also research the zoning code so there is an additional upside long term.   

On another note, I had a lengthy conversation with VRBO last night while we both looked at one of my listings and came up some ways to improve it.