If I choose this structure, how does a Founder compensates the Qualifying Broker for this, salaried W2 or revenue split?

You're in the right place to learn as much as you can about whichever niche you choose. 

I also choose KC out of the top 5 cash flow markets for the proximity and ease of traveling to from DEN because of my family life ( kids are 5 and 3).

You will get notified when anyone posts mentioning Houston (or any other keyword you choose. )

I hope this information allows you to make informed decisions regarding your investments and how you choose to finance. 

In the future if you choose to pursue this strategy again, you may want to rezone it to commercial before you sell it.  

That's the question that a cash buyer asks when choosing an area to work in.

(Get Paid House hacking)https://www.biggerpockets.com/renewsblog/2014/03/13/investing-multifamily-ben-leybovich/ (Podcast 061 - How to succeed in multifamily investing-Ben Leybovich)https://www.biggerpockets.com/renewsblog/2013/04/09/how-to-buy-a-small-multifamily-property/ (How to buy a small multifamily property)https://www.biggerpockets.com/renewsblog/2015/11/16/how-to-choose-areas-multifamily-deals/ (How to choose multi-family deals)http://www.biggerpockets.com/renewsblog/2014/07/19/how-to-buy-a-duplex/(How to buy a duplex)https://www.biggerpockets.com/renewsblog/2013/12/12/bp-podcast-048-duplex-managing-tenants-darren-sager/ (Podcast 048 Duplex investing and managing tenants-Darren Sager)Much success to you!

It is both cheaper and, should you choose to become a broker later, much better "real world" preparation than the additional 45 hours of class (IIRC, salesperson is 45 hours while broker is 90 hours).

If you choose not to bulldoze and start over, there is a likelihood of needing all new pipes and electrical.