With a low 4.75% rate but minimal cash flow ($50–$125/month), your equity could likely work harder elsewhere.

Minimize expenses and pocket as much of that $60k as you can.

One challenge was coordinating rehab work within tight timelines to minimize holding costs, but we navigated it by hiring a reliable contractor.

Hypothetically, if I found a property with strong rental demand, the income could cover loan payments, operating expenses, and generate a modest positive cash flow.While this example involves upfront risks, the idea would be to leverage my father’s expertise as a contractor to minimize renovation costs, boost the property’s value, and create a long-term asset that appreciates over time.

We got a bit delayed in the permitting process...We had to get a geotechnical report done due to a slope on the back side of the property, but are now back in process again.

Even with a week off for Christmas and New Years, there's no reason for this delay. 

It is my understanding that people refinance and then use those funds other ways (personal living, investing, some to buy another property) as a means to minimize tax obligation. 

Quote from @Andrew Steffens: Sorry about your frustrating issue - Airbnb is not only guest friendly but most of the time they will be the one paying for damage so they are going to try to minimize you. 

@Brian Rocha It’s clear why most lenders insist on including rehab funds in the loan, and all of our partner banks follow this practice for fix-and-flip loans to minimize risk and meet securitization standards.

The down payment wouldn't be minimal if your finances were tight.