I don't do regular checks mid lease, usually I am there once a year for repairs and I do a walk through then.When they notify me they are not renewing I do my walk through as I am showing the unit to new tenants and have a conversation with them about what they need to do to get their SD back 

If there is fire, smoke, water, or storm damage to the unit  and they are forced to move out while repairs are being made - the Renters policy will pay a set amount of money towards their temporary residence (hotel) until they can find a more permanent place to live or you are ready to have them move back in.

See if one of them would go with you to the property to assess the work and how much it would cost to repair the house and capitalize on the "forced appreciation".Or, you can perform "sweat equity"...doing some of the work yourself if you have some experience with renovating and repairing property.Also, be sure to soak up the free knowledge here. 

I'm trying to put together some estimates for a repair sheet.

I can't imagine there are any major repairs on it since it's so new.

A lot of PM’s will draw you in with a very competitive rate and then make their money back surcharging on repairs.

I told them upon moving in that they are to treat the house like their own and repair what they break. 

C- Class Property Renting for $800 Per Month , SFR Property in decent shape needs minor repairs ( maybe 2-3K) - 60,00K Asking Price Option 1: 25K Cash offer close within 7 days ( I can do a cash out refinance and pull all the money out) Option 2: Seller Finance – Purchase Price 60K- 0 Down Payment, 30 year amortization, 15 Year Balloon ( Balloon Payment $34,685.10) @2% interest ($14,382 interest to be paid over time) 221.77 Payment per Month.

Any way to reduce the distribution amount to account for repairs and property taxes over the years?

Pad your reserves with the cash flow.The liquid side account absorbs month to month fluctuations (extended vacancies, major repairs, etc. they WILL happen) and keeps you alive until you can find other options, or until conditions improve.