I then painted the inside and furnished both units.

Out here you can expect to pay $200-$250/SF to build it and sell it for  $400/SF + for a medium size, medium furnished development.

We did get a lot of under qualified applications that wanted Long term, and ours was also fully furnished.

I think your assumption for $2300 / month is inline and might be able to push it a little higher depending on the bathroom situation (ensuite bath >> shared bath) and what is included (furnishing, utilities ect).Here is what we we're able to deduct wrt taxes last year in the situation you are describing.

This strategy is great, but it fluctuates depending on the time of year, you probably won't live for free because it is more challenging since you are only Airbnbing a small space or basement unit.3) MTR - this is a good in between style of creative strategies since you can furnish a place nicely that would rent out on Airbnb but you want a long-term high quality tenant like a travel nurse or corporate rental that stay for 2-3 months vs. under 30 days for most Airbnbs.Combining strategies is the best way to go, ideally, you would find a house with a separate entrance or walkout basement, live upstairs in the one of the bedrooms, rent out the other upstairs rooms and STR/MTR/LTR the bottom unit.

Keep in mind that you are renting out a furnished rental vs. a standard rental. 

This is in relation to the furnishing of alcohol, if your rental actually furnished the alcohol.

Also, and not sure about the demand/feasibility in your area, maybe furnished short-mid term lease.

Arbitrage is just a job.Without sufficient funds in reserve to fully furnish and outfit a STR properly, you are setting yourself up to fail.  

Solar, propane for heater & shower, mini split, fridge that runs off DC, tongue & groove ceiling with puck lights, farm house sink with butcher block counter tops, full bed with storage underneath, 3 seatbelts connected to couch that turns into 2nd full bed, all electric is stored under bench, an induction stove top, fully furnished with pots, pans, and work out essentials, and our favorite part: A ROOFTOP DECK to enjoy the sites.