However, past performance of appreciation is not necessarily indicative of future gains due to variables within each market.

When considering pivot strategies like converting a flip to a rental or utilizing short-term rental (STR) platforms, it's essential to conduct a thorough market analysis before making such changes.

One unit is remodeled and empty and the other is not and has tenants paying way under fair market value ($700). 

This means having to take a chance and take the property off the market for 2 weeksOption 2- Accept the offer with a provision that allows you to continue to market the property, knowing that there's a chance FHA may not fund the deal. 

What market are you in? 

I'm in the small Eugene market, which in terms of industry and jobs offers no real reason to be here.

From both a real estate and STR perspective, the key to success will be choosing the right market first.

Myers Market Update Feb 2024 (biggerpockets.com)

Plenty of comps and market data to support second/third house claim.

Use AirDNA.co for market research.Search the immediate area, in "Traveler mode" to see what the competition is doing.All that said, I concur with the general sentiment of the above comments.You are already running tight.