The tenant owns no real property (homes, cars) that the sheriff can seize, however, they do have quite a few expensive furnishings.

The tenants tend to be stable long-term since they cannot find as good a deal elsewhere.For our Denver properties we have set them up with nicer furnishings than you would for students, but similar services - we pay for internet/TV & utilities then offer the rooms as "all in"  with no squabbling over who pays the bill.

You might look at a furnished mid term rental (long term rental shorter stay, like 3 months).

My question is whether or not the actual cost of the furnishings themselves can be considered something that would offset the capital gains.

If you have $80k to invest, you might still be a little light with the current market prices and cost to entry (especially if you have to furnish it yourself first).  

I've rented high end houses furnished years ago for $2500 and have 4 groups interested in a current house ($250k range) at $1350.

Chapter 5313: LAND INSTALLMENT CONTRACTS5313.01 Land installment contract definitions.As used in Chapter 5313. of the Revised Code:5313.02 Required provisions of land installment contracts.5301.25 of the Revised Code and a copy of the contract to be delivered to the county auditor.5313.03 Biannual statements furnished to vendee.Every vendor under a land installment contract shall, at least once a year, or on demand of the vendee, but no more than twice a year, furnish a statement to the vendee showing the following:5313.04 Vendee to enforce chapter provisions.Upon the failure of any vendor to comply with Chapter 5313. of the Revised Code, the vendee may enforce such provisions in a municipal court, county court, or court of common pleas.

No part of the cost of the property may be furnished by the lessee or any other party except as follows: (1) A lessee may pay for an improvement that is readily removable without causing material damage to the leased property (i.e., a severable improvement), provided the property is not subject to a contract or option to purchase between the lessor and lessee at a price other than FMV at the time of purchase or sale.(2) A lessee may pay for an improvement that is not readily removable without causing material damage to the property (i.e., a nonseverable improvement), if the improvement is furnished to comply with governmental standards on health, safety, or the environment; and the improvement does not increase the productivity (or capacity) of the leased property to more than 125% of its productivity (or capacity) when first placed in service, or modify the leased property for a materially different use.

For example, on Zillow, if you mark the furnished option your search rating goes down exponentially VS. if you highlight the new kitchen in a suburb that can be a huge draw. 

Shoot for the Midterm which might be better and more consistent depending on the demand of the area, which you can check on Furnish Finders.