What do the local codes say about a rebuild for an existing non-conforming parcel with a greater than 50% loss?

Its so much to talk about and thereś so many moving parts but this is some food for thougtht. 

Food to know.

Who is on the insurance, who gets to decide when to sell, when to cut your losses?

Yup not real.. if there is any substance to it.. its just a loss leader to hook you  plane and simple.

.- I underwrote these projects only using annualized revenue (rent increase with some extra vacancy loss in year 1 x total units x 12 months) / total project cost- For projects I know were successful, I'm seeing a larger increase in NOI than expected so shifting to a yield on cost metric that's market adjusted NOI growth / total project cost.- I'm seeing a lot of volatility on these and can't land on what metric to use.

It would cover any food that spoiled as a result of that.

For example, just using Seattle as an example - well, if you can't evict anyone until they've killed your cash flow and destroyed your property, then you will either end up with less rental properties overall as landlords sell, or higher rents overall to absorb the losses elsewhere.

The other considerations noted by other posters are valid, but when you weigh them against the high risk of extended vacancy, ending at the beginning of winter is to be avoided at all costs.  2 months of added vacancy is a 16.6% loss to annual income. 

Save this post, because if you think you can find and manage Class C tenants from OOS, there's a VERY high chance you will end up being penny-wise, but dollar-foolish.Hopefully, you'll be able to recover from your mistakes & losses and won't have to sell at a loss.