Most US mortgages are based on 30 years and without assurance on insurance, why would banks continue to make mortgages in higher risk areas if the potential is complete loss?

I would start with asking the fire marshall what is the minimum and get it in writing and ask him/her what is the timeline for completion. 

After putting about $50k into the property,  I’m just about $25k from meeting my completion goal that includes stucco, drywall, and siding.

I completely agree.

Draws are almost always held back until you reach certain points in the project or that work is completed.

Ok, with that is a requirement to complete an civilian style ASVAB. 

David David,It completely depends on the tenants circumstances. 

If you choose to go with this strategy you could complete your exchange and immediately do a cash out refi.

I hired Jenny Yi to design our latest STR in person, she demanded that I pay the full amount of her services upfront, $7,500, which I thought was strange as we are used to paying half upfront and half once it's completed, but proceeded anyway because a couple of people recommended her.

Quote from @Anthony Miller: Thank you @Wale Lawal, this is in complete alignment with my thinking!