I’m very close to entering the STR market and I may very well be taking a major risk and loss being too late to game but i did decide to do what you recommended (before seeing this post).

Deficits, China selling, demographics, the great unwinding of globalization, the loss of reserve currency status.

Update is unfortunately looks like the home will be selling at a loss.

At the end of the day PM services are generally regarded as a loss leader for vertically integrated real estate companies that choose to self perform this task.

If there is a lawsuit or claim, the claimant's attorney, as well as the claimant's insurance (such as the insurance provided by Airbnb/VRBO), will look to prove and demonstrate your liability in the loss.

This is an important status for people to go for since it allows you to write off losses from rental activities on your other active income. 

Who is responsible for risk of loss during the renovation and management period?

Owner shall not hold the Agentliable for any willful neglect, abuse or damage to the Premises by tenants or vandals or others nor for loss of or damage to anypersonal property of the Owner or any tenant including loss due to exchange or theft by tenants or any third party.

What do the local codes say about a rebuild for an existing non-conforming parcel with a greater than 50% loss?

Yup not real.. if there is any substance to it.. its just a loss leader to hook you  plane and simple.