With the limited info, I would say #1 is your smartest option but there are a lot of variables missing.

You can absolutely use classes in place of customers but classes are limited to 40 with QBO Plus.

The main factor is will rents cover the debt liability and can you sustain 3-4 months of no income to cover the debt? 

Utilizing empty lot space in this way helps to combat the increasing housing prices and limited supply many markets have been experiencing.

I want to be able to keep business finances and liability separate.

However, what if you prefer simplicity, limited risk, and are living off of the income? 

Also 4th quarter of last year Packwood and county officially did discuss potentially regulating STR's by either limiting numbers or adding a tax to cover increases in local services that are needed. 

@John Clark I ran a nonprofit for 5 years and considered that option for this strategy, but, for a lot of reasons, it would be more limiting in the long-run.

If the value of the furnishings exceed the limit for felony charge vs petty theft you should definitely go up the chain of command.

We’ve considered just disclosing and selling as is, but I suspect the buyer pool would be very limited knowing the issues and risks.