He permitted me to a recreational building permit so I can finish it but limits it from a perm bathroom and kitchen and he came as close as possible to saying after inspection I’m fine to do whatever.

It's best practice to start early and build those relationships. 

That you wisely build in the costs for replacement linens and towels (also offer black face towels), possibly don't use high-end top-down shades in the Bunk Room (although those black out shades match all the shades in the rest of the house and it's a high-end property), chalk can be brushed, semi-gloss on walls for easier clean-up... and yes, there are clear check-out directions to run the dishwasher provided via an online guest book, a physical guest book, and an email I send regarding check-out the day before they check-out.

I have many GC's who have placed bids on conducting a full rehab / even new build, and the area is in a great neighborhood with $400k homes across the front yard.

There's a lot of large apartment building going on but I'm concerned that there may be too much building given the number of jobs in the area.  

Build your team first.

As part of this search, I got connected to a company that does turnkey properties in Birmingham - they build them, sell them to the investor and manage them. 

I will continue to buy in CO due to the overwhelming positive factors that come with owning homes in CO; Appreciation, strong demand, location preferences, long term trends of CO housing market and strong rent increases.

What factors should I consider to determine if this is a good investment?

We are building an ADU in California and he was supposed to be done by end of April.