I had moved to New York City at the time and had a tiny closet with no windows as my office.

I've also had guests buy their own TP and trash bags and leave the extra.As for toiletries, I leave the traditional "Starter Set" of shampoo, a little bar soap, conditioner, and lotion  (the tiny hotel bottles). 

We created it about three years ago in order to help us convert a mobile home park that we own in the center of Florence, Arizona into a tiny house village.

And one point the OP made about their credit.. only gurus talk about that.. by the time someone is days away from foreclosure their credit is trashed  having it actually go to sale will hurt a tiny bit .. but your not saving anything. 

It will include a compact bathroom, a tiny kitchen area, and a heater—just the essentials to make it comfortable for someone to stay in.

I am sure it will all work out for you in the long run.. we sold ours and made a tiny profit on each but its better than a loss right ?

The tiny 2/1 needs rehab and wouldn't bring $10k in today's market in its current condition.

Plus the added requirements around getting drawings and general contractor for even adding a tiny closet.

DC is also very tiny. 10 square miles.

Here are the numbers:IncomeTotalPartner ContributionsManaging Partners Debt$0.00Partners Deposits$987,459.99Total Contributions$987,459.99Operating IncomeAirbnb Income$50,186.50Square Income (Vehicles or add-ons)$6,741.04Total Operating Income$56,927.54Total Income$1,044,387.53ExpensesPurchase of propertyCost of House-680,000.00Closing Costs-$26,744.44Total Cost of Purchase-706,744.44Set Up ExpensesHouse Improvements & Care taker home addition-116017.03Adding Tiny House-52130.83Furnishings-68403.65Vehicles-43150Set Up Costs and Advertising-2339.53Total Cost of Set Up-282,041.04Operating expensesCare Takers-14535.9Additional Cleaners-1505Cleaning Supplies-2670House Supplies-1340Landscaping-4230.66Utilities (Power & Water)-8204Internet-315Pest control/fumigacion -120Pool cleaning/maintenance-2220Vehicle Gas-552.3Vehicle Maintenance and Repairs-6625.01Welcome Food for Guests-115Property Repairs-4999.64Bank Fees-1208.06Accounting Fees-1085Insurance-955.74Other Expenses-1071.2Total Operating Costs -$51,752.51Total Expenses-$1,040,537.99Net Income$3,849.54Net Operating Income$5,175.03Now 5k for an investment of 970k is not a good investment.