However, and I don't know anything about AirBnB in Denver, but my biggest concern for this project is the ability to consistently rent the basement for $1,800. 

A buddy of mine who invests out in Phoenix once had a client facing a similar timing mismatch on a rehab project.. they ended up working closely with a local credit union who was more open to interim valuations.

And yes, I've done fire restoration projects. 

One of my connections will fund the rehab for less and give it all to us on the upfront to finish the project at a lower cost.

Are there any strategies here to utilize bank funds for our project?

Small demolition projects make massive impacts.

.- Large remodels or construction projects (Live in Flip) can be self-managed, worked on directly, and the value add, after 2 years, is largely tax free up to certain limits. - Many areas around the country allow for ADU Construction - house-hackers enjoy similar benefits to remodeling projects by being naturally on-site for ADU construction. 

From what you said, you have been stuck in analysis paralysis because you are too spreadsheet-centric.

That being said, if you'd like to look at higher leverage on bridge/hard money financing for your next rehab project, I'd be happy to chat further. 

It's a perfect winter project for me.