All banks have different appetites for different products.

My agent said it would most likely be in excess of 100K to repair which may not even include desired cosmetic changes.I guess the point of this post, while it has no direct question, is to vent a little and just get some advice to maintain my motivation.

This is never a useless excessive but a necessary one.

In other words, at what point does a typical GP to determine there is "excess" cash flow that should be distributed accordingly?

I've since decided that the cost of buying an MFR in the Seattle neighbourhoods i'm interested is just not feasible at this time (with this impending market crash, pouring excessive amounts of capital into something that might exponentially depreciate in a couple years sounds risky).

Depending on the appetite of the new builder, and the purchase price you are in contract for, you can always go to the new builder and flip this so that the builder can get both lots.

Best bet might be to negotiate with the city and settle on 1 year of back-billing vs 10 years.  10 years seems very excessive.

Set your goals pretty high and try to accomplish them in excess.  

I understand you guys have a lot of customer acquisition costs and a higher risk appetite that is part of those fees, Jay.

But if that is what fits your risk appetite while you're learning the ropes of being a landlord then it might make sense for your scenario.