To me, this is using security deposit to pay for repairs DURING a lease (because the tenants aren't moving any time soon). 

This approach allowed us to move quickly and efficiently, ensuring the project stayed on track.

I am renting out my first property and I have a tenant that is interested in the property but wont be able to move until August 2024.

Rents will likely start to increase again in 2025 is my thought, but you probably can't wait until then to buy as home prices will have moved up again.   

This approach allowed us to move quickly and efficiently, ensuring the project stayed on track.

It currently is tenant occupied until October 2024 and after they move out I plan to use as a short term rental.

This approach allowed us to move quickly and efficiently, ensuring the project stayed on track.

in addition these value adds are typically on a different timeline than an ADU addition garage conversion (my last rehab was my most expensive ever and took 2 months and one week from guest move out to guest move in).  

This approach allowed us to move quickly and efficiently, ensuring the project stayed on track.

If the AC was workign when they moved in, even if it's a luxury, it should still be working as that was the condition of the property when moved in.