They took on more projects than they can handle just as a number of market variables turned against them: materials costs and availability and staffing, both back office and subs, just to name a couple.

The contract must contain:the contractor’s name, address and telephone numberthe approximate start and completion date, including any contingencies that would change the completion datea description of the work to be performed and the materials to be provided to the consumer, including make; model number or any other identifying information; and the agreed-upon price for the work and materialsa notice advising you that you have three business days to cancel the contract, unless during an emergency you waive the right in writinga notice that all payments received by the contractor prior to completion of the contract work must be deposited in an escrow account

I would need to know more specs on the house but with material shortages It's difficult to say how much to budget. 80K-120K for full gut perhaps but unsure with lumber beings so expensive and shortages.I would plan 9 months of vacancy between the pain you will endure pulling permits & having your contractors show up everyday to complete the work & then final inspections to get a CO. 

3.Draft a written agreement where the property owner retains full ownership of all guest funds (nightly rates, cleaning fees, and taxes), while the cohost invoices for management fees and reimbursable expenses?

With time management, sourcing materials and learning how to complete task on your own.

Here's a few examples:Does the lender release for materials on site or do they have to be installed? 

We have a clause in our lease that plumbing clogs not caused by mechanical/material defects in the plumbing will be charged to the tenant, and if your lease doesn't have similar I would recommend such a clause.

There is plenty of material to take a look at that will certainly help you on your investment journey.

It's not a great time to do a first flip with high labor costs, high materials costs, high property costs, and high rates.

Most of the material used comes from non U.S. friendly countries.