Renting out the house doesn't sound like it will make money or break even every month, once you account for vacancies, maintenance, increases in tax/insurance, and turnover costs... unless I'm wrong there? 

Since I will be maintaining her property, I am planning to offer her to convert it to an Airbnb rental and I will run it for her since I am based in Tucson, Arizona.

They also have a Coaching Program, run by 3 people who are members.

You could go with a cash-out refinance to pull out funds, but you'd be sitting on those funds for a bit if you aren't looking to purchase a new property until next year which isn't ideal.If you aren't looking to pull money out on this one then you would be fine.

This really turned into a money gimmick it seems. 

The guest said she was house hacking but only stayed there in the property 6 months out of the year and short term least it out the winter months to travel and stay where it is warmer weather.

Tax is 5207Maintenance 637 rent minimum of 2200 to be on the conservative side does this unit make sense to purchase for long term  investment or am I better off putting money in a CD account that’s earning 5% interest

I've decided to put the excess in a savings account just in case the city realizes the mistake and wants the money back.

Even if it appears your property is marketed at less than the competition, there could be something about it that makes it less desirable (busy street, near train tracks, no off street parking, run down neighbors, etc.)

I've run into that problem (it's a good one).