I pay 10% of collected rents and no leasing/releasing fees.

Is it possible to rent the property as a 2 bed and place verbiage in the lease that releases me from liability should the tenant use the two non-conforming beds for sleeping in?

The lender is setting up release provisions (they call it partial pay-downs) so that we can do that, and the acceleration clause is 120% for each property.Has another ever done a loan like this before?  

I doubt they will offer to standby until you re-lease and will probably offer you a lump some/ lease termination fee.

Firstly, the HUD inspector isn't supposed to release funds to the contractor until certain stages of the project are complete.

Often when a loan is paid off the recording of the release is overlooked and other innocent errors that will be caught by the title company 

I also called her work but it's a large company and would not release any info. without her signing a special form.  

I have a flip listed with an agent but have been presented with a lease option offer direct to me from my network that is attractive enough to consider. Trying to figure out if I take this option what my obligation wo...

Airbnb does (they release on check in day +1).

A lawyer or title company can arrange the change in ownership.They can contact the lender and determine whether this lender will allow her to be released from her obligation to repay the mortgage.