Now my goal is to Build Long-Term wealth here with my wife but I'm very interested and determined within the BRRRR Strategie.

This would be the safest approach but also, anyone that is worried or has extra strict oversight in their area could simply avoid anything alcohol related in their packages.

This will get you the name on the dog on record designating that specific animal as their ESA.Good idea -- AND ask for additional rent/deposit, unless there is some legislation forbidding it for a properly registered service animal.My humble opinion, all this "emotional support" stuff is simply BS so they can take their precious animals everywhere they go and not have pay extra.

Especially now, I am seeing a lot of people who bought during or right after the COVID pandemic and are in situations where they simply cannot sell their homes for any profit (many of them bought as new construction).

You can go the free route which does take some time, door-to-door, cold calling, and simply messaging buyers.

This is a house that I’d tell others to run from, but since we already own it we’re just trying to determine best options.  

My idea to achieve this is to convert the studio into a short-term rental.I’m trying to determine if I’m forcing this deal to work by relying on the short-term rental strategy or if it’s a reasonable approach given the numbers.

Generally there are multiple units for each "zone" if you will when I've seen them installed.Regarding your problem at hand, I personally would simply adjust your plan to move and make your initial plan to get the current issues resolved, while costly now, in the long run holding onto the unit will likely pay off. 

They should be able to determine the COC, annualized return, estimated ARV of a BRRRR, accurate rent comps and more.

. - Value add - When building additional units, what steps should be taken to determine how many can be built?