I’ve seen many investors miss oppportunities when combining primary residence use with investment strategies, but you seem to have timed this perfectly.

That kind of restriction just doesn’t work for someone like me.I’m trying to figure out if I might be missing something in how I’m approaching this or if others have insights or examples of towns that not only allow STRs but also have laws that offer enough flexibility to operate in the way I’m aiming for.Many towns technically permit STRs but impose restrictive rules like membership requirements, ownership duration limits, or rental day caps, making operations challenging.

Unfortunately I had a bad inspector who missed a lot which made it about a $60K renovation instead of what I planned for which was $15K.

The plumber will likely have to cut open the ceiling to confirm and make repairs, so you can save a little money by learning how to do that yourself, confirm the problem, and then call the plumber for repair, then patch the ceiling yourself.As Jonathan is trying to point out, it's important to expect these things and have funds on hand to deal with them.

Quote from @Brian Cerezo: I’m in search of a roofer that can patch up my roof in my rental in Canton Ohio so I can get it ready to sell.

This wouldn't be mortgage fraud (because you are living in the property), and you are able to make some revenue from the tenants, or am I missing something here? 

Will they institute the default rate over a technicality such as missing the completion date by a few months  or will they ignore the default rate because they see the reason for the delay wasn't entirely borrower's fault and borrower  has a plan of action to get the project on track?

Are there any other cons that I am missing for doing this?

They also noticed the furnace and hot water tank is missing / stolen. 

We are actually thinking about moving into the smaller unit. we are thinking if we should rent the main unit for long term rental or STR like airbnb but im afraid with airbnb, the non occupied days we may miss out on cash if its not rented out.