We’re considering walking away at this point, holding onto the property and furnishing it for AirBnb.

Medium term furnished rentals (1-6 months) are perfectly legal, can command a rent premium similar to STRs, and are less management intensive than STRs so you might look into that strategy as well.

100% of my clients that have taken my guidance on remodel and furnishing, are getting 20% - 40% cash on cash returns.

I also find that you'll spend less furnishing one $600K house than you would two $300K homes.

Complete with furnishings.

Then keep in mind you have to furnish the property.

My goal is to define my role as the person that finds the deal, manage the rehab, lineup financing for rehab/purchase, furnish property, line up refi, manage for a 20-30%. 

If you find a 4/2 SFH, with adding some furnishings (bed/matress, dress, and desks in each room) you could potentially rent it room by room for ~$950-~$1100 per room (you may need to dive deeper into this range; this is based on student room to room rentals for Boise State University students that rent in this area).

Furnish the bedroom you decide to rent out. #2.

She is looking to put 20% down and will need an additional 20k for minor repairs, upgrades, and furnishings.