The contingency reserve may be released only if required, necessary, and unforeseen repairs or deficiencies are discovered during the renovation.

Quote from @Steve K.: I’m surprised we haven’t seen more regulation in this space.

I do see the point @Steve K. and others are making about the annual turnover and low monthly rent being in conflict. 

Quote from @Steve K.: How about this one: “Can I sell my Airbnb property for 50% over direct comps because I want to use the income-based approach valuation?”

In West Los Angeles, where I am building my ADU, the rent for a 2 bed and 2 bath goes from $ 3500 to $ 4000 per month.In some new complex 2 bed and 2 bath goes for $ 5000.Since the cost to build is reasonable around max 250 K I think is a good deal.Where do you buy a 2 bed / 2 bath in LA for $ 250K? 

Quote from @James Kerson: @Steve K.

If you're considering BRRRR, the FHA 203(k) loan could work for bundled purchase and renovation, but it’s often simpler to use personal funds for lighter rehab projects.You could focus on properties with strong rental potential and manageable upgrades to increase value.

The Home Inspector report revealed major deficiencies in the rehab and the Home Inspector told me that the rehab was like “putting lipstick on a pig”.

Even if the property were to sell it $180,000 that's a lot of risk for 30 K of profit.

@Rob K. is correct that you want flexibility in this decision.