Then you have bigger problems than figuring out what to do with excess cash flow-- huge financial headaches, the threat of foreclosure, tainting your credit,etc.

Because their projects need to generate excess of 12% to compensate them and you for it. 

I invest out of state in areas that I am familiar with and so far I am happy with the appreciation (in excess of 12.5% for the first six months of this year) and net positive cash flows above 12% on my down payment + CCs. 

Aside from the bounced check, they left with damage to the property, didn't clean, no evidence as requested that they maintained pest control, all of which will cost well in excess of their deposit to rectify.

I have money to invest in the form of cash in SD Roth IRA LLC + excess equity that may be tapped via either sale or cash out refi.

Also what happens when you refinance (instead of selling) and market value declines hence you get stuck with a mortgage in excess of the assets market value?

If anything, it states that if there is determined that there is excessive violations at a property that a Remedial Action Plan with the city would be required.Here are a link that might helpCMPD Rental Ordinance

We are finding that many of the contractors are fat and happy. 

I don't know if it varies by state/county but that seem excessive.

Both in the form of the excess part of the $150K that you don't need for the deal(s) you're currently working and the entire amount when you're in between deals.I certainly would not consider this unless I could use it to generate an even higher return.