I have an interested tenant, they pass qualifications on all standards except background check which isn't complete yet pending formal application (using Cozy.)

It might seem like a lot, but you want to make sure you are prepared for major cost such as a roof, furnace, air conditioner, water heater, kitchen appliance etc.  

Just a bit confused on how you do it all on Air B&B website. 

No smoking policies keep the air same as if they were not there.

Other options we've considered; renting out the main house instead of her occupying it immediately, doing air bnb for the studios.Any advice would be appreciated.

(essentially turn key, pre foreclosure) 3bed/2 bad/ 1350 sq ftPurchase price $170,000Appraisal at $205,000Annual Expenses: $13,000/year (utl 3120, maint 1200, ins 2400,advert 1000, supply 100, lawn 1000, 6% tax 4180)Annual Mortgage: $9,056Expected Annual income @ $200/night, 60% vacancy: $43,200Annual Cash Flow: $20,937Cap rate: 17%We assumed high end of expenses list and low end of nightly rent, used vacancy from searching our property type and area on air bnb.

HVAC is now a high efficiency gas combi-boiler with newly installed central air.  

Check out Cozy for tenant screening, rent collection, and maintenance requests. 

I would look into AIR BNB.

The Air BNB operator would need to take full responsibility of repairs and maintenance on the inside of the unit as well as full liability for the actions of their guests (damage to property, illegal activity, parties that upset the neighbors, etc).