They both know we budget 90% occupancy, but our model is successful at 65% occupancy as far as no loss of capital.  

Sometimes it might be better to leave some money in the deal to get a better cash flow and provide a little more of a safety net.I hope that helps.

Consulting with a contractor or local building official is advisable to navigate compliance with safety requirements while optimizing your renovation project effectively

Excessive complaints or three violations in three years could lead to losing the ability to operate​.Impact on Neighborhoods: Non-owner-occupied STRs (Type 2) may cause friction in residential neighborhoods, as they often function like businesses, which can disrupt the local community atmosphere.Recent Regulations (2024 Updates):1) STR operators must obtain a permit for either Type 1 or Type 2 properties, depending on whether the owner lives on-site.2) Platforms like Airbnb are required to remove any listings that lack a valid permit.3) New noise and occupancy regulations apply, with stricter enforcement through permit revocations and finesThese regulations are part of the city's efforts to balance the benefits of STRs with the preservation of neighborhood quality and local safety standards.4o

They prioritize in their mind safety over yield.

You don't give any indication of what you can afford, so it's hard to give you much more advice than that.When asking for directions, it helps to know where you are at and what mode of transportation you are using (foot, bicycle, Ford F-350, Porsche 911, etc.), and where you want to end up.

There is some great material on the business mode for bay area that in Biggerpocket. 

Quote from @Joe Yobaccio: @Chris Seveney I am trying a simpler version of a loan partial, but want to keep my name on the note and Colllaterlize it for safety of a lender and would like some feedback on the terms. 

Your budget can not dictate the safety of the project and your relationship with the town and permitting.

The day we were set to switch over I was told with their direct API, VRBO no longer will process payment and for our business model I was not setting up 90 plus listing stripe accounts or doing the accounting for that process.