There was one paragraph towards the beginning that mentioned they'll have saved up $9800 after just one year, it seems to me that they're claiming all of $9800 gets subtracted from the purchase price.

After subtracting the debt payment I want at least $100 per door per month.

Then, they would take 75% of the rent and subtract the PITI (principal, interest, taxes and insurance) and that is what counts as income.  

Then, subtract 5% so that you have a cushion to protect against a bad appraisal or even an accurate appraisal that comes in low.

Then, if you have debt service, subtract that to give you an idea of your ROI. 

Multiple rent by 12 then subtract 50% as ballpark.  

The issue I am finding is that they only accept 75% of my rental receipts (this seems crazy since I only had a 2% vacancy rate in past 5 years) and they subtract any expense I show on my tax returns as well.

If you have an Actual Cash Value policy (ACV for short), the receipts will help determine the appropriate amount of depreciation that they subtract from a claims settlement. 

You may not have enough to do your repairs based on an Actual Cash Value basis if the kitchen that burnt was 20 years old and the insurer subtracts 30 or 40% for depreciation, for example. 

Now if your estimate repair is 65,100 (I would just round it up to next thousand to be on the safe side) so I would go with 66kso 217k subtract 66k should be 151k...your max offer you should be 151k.