We have built into the lease that if they ignore us and do not sign than the increase is automatically but into effect AND there is a $100 fee for each month that they do not sign.

Do I discount the rent from the escrow automatically?

, cleaned, and installed new HVAC, ran all new pex lines/valves/shut offs, all new hardwood flooring and carpet, all new and expanded kitchen cabinets, new appliances, created full bath and connected it to a bedroom to create en suite, repurposed 2 unused rooms (1 into a 4th bedroom/office/playroom and one into a family room, installed new interior and exterior lighting throughout, new automatic garage door, and landscaped.

This is less possible in some C- to D neighborhoods, but C and up should all be on auto-pay, so the late fees get automatically deducted.2.

I assume this is now a default that Airbnb has set that requires you to have a license, or you are automatically defaulted to 30-day stays. 

That's an automatic get up and walk out....But seriously maybe there is some value for you to do it the other way.

Depending on your definition of house hack, these excess losses may be able to be carried forward as passive losses on form 8582 (not enough information to determine this part, would need additional info).I will mention as well that if you choose to switch to another accountant who more specializes in real estate, being that it's April, any good CPA will automatically want you to file an extension.

Just because you don't practice it doesn't mean you automatically subscribe to instant gratification, but it's likely if you subscribe to instant gratification the losses are compounded by not subscribing to delayed gratification. 

I am putting in a small bathroom, enclosing the area inside where the automatic garage door is... city requires that all conversions in our area raise the floor.

Essentially, it is not an automatic thing.