This is networking, tapping your current list of friends, family, co-workers, other real estate investors, etc.Ideal duration depends on business plan: I, personally, am a fan of long-term fixed rate loans.  

We add the tenant to our management software to streamline communication throughout the lease duration.

While the duration of market upswings can vary, a five-year investment horizon often aligns well with market cycles.

I'm just curious should I furnish the place or just keep it empty and people can move their own stuff in and just drop the minimum lease duration to 3 months?   

I would advise you on the DSCR loan to implement/request a low duration prepayment penalty (i.e 3 years - 1 yr PPP).

In my experience, outside of life events, when tenants leave early there's a strong correlation between how the owners approached repairs, spending money, etc, and the duration of tenancy.

I would try to network with other MTR landlords in the area to determine best course of action  Yea, I would agree that the rate wouldn't be on par as an MTR that is furnished, however I do remember from my renter days that the shorter duration leases were more expensive per month than the yearly leases. 

Make sure all parties know the jurisdictions that you need permits/approvals with, and whatever duration you think it will take to achieve permits, probably add 50%.  

Consider the Duration: Evaluate how long you plan to keep the new loan.

From the sound of it, I'm gathering your advice is have her rent it for a shorter duration, renovate it asap then put it on the market for the higher amount.