If you're reluctant to surpass putting 50% of your savings into a deal (let me know if I am interpreting that incorrectly), I think the why behind that is important in answering your question.

Also, please let me know if any of the information I've been provided or assumed above is incorrect.

To me, a worst case scenario is if I realize in three years that my analysis was incorrect and I will not get positive cash flow. 

The stories many tell about "recapture" are often incorrect.

Banks think (incorrectly) that having more mortgages equals more risk for them.

They should be able to provide you with a video of the progress and pictures of work this is subpar or done incorrectly. 

My personal house is incorrectly recorded in my county records.

You are doing a disservice to your partner by giving incorrect advice and it can go wrong if he feels like you are not correct.Again, whether the repairs/improvements are done with capital already in the LLC or from new contributions will not matter.

I don't know much about lending/appraising, so if I framed my question incorrectly feel free to let me know!

Or maybe I am looking at this incorrectly and 5% upfront is very much in line with industry?