I am also planning more extensive renovations to modernize the home, which will further enhance its appeal and value.

Extensions are likely granted, if needed.You will receive $3k relocation assistance at the end ( unless you have other liens, back due water/sewer/HOA etc. ) You can also stay in the home until the sale closes, which gives you at least a few months payment free to be able to figure out where you will relocate.

It was quite extensive, all new electrical, hvac, plumbing as well as foundation, painting, floors and yardwork and demo of shed.

Maybe the work is so extensive that it won't make them a profit?

You can always ask your tax pro if you're unsure.To give you an idea, I built an extensive flow chart for our bookkeeping team to help decide if something should be capitalized or deducted for a rental property and this became our SOP for capitalizing vs deducting.

CAR met with them last week and are attempting to get an extension till April but no word on that yet.

My last one was my biggest one which included a 1000 sqft extension to an 1100 sqft single-family house.

This is my first extensively water damaged home that I may purchase.

The most common is to move in family or a rehab extensive enough that unit cannot be occupied.  

But realized they were a lot more hoops to jump through with the city to make it a separate dwelling unit so we have opted to make it an extension of the home.