I have my own way of running numbers, and I never really factor in principal pay down and some of these other numbers; I personally view them as dessert, not the heart of the meal.WRT your original question, one easy way to make this deal look so much better is to self manage.. seems like that will make you cash flow positive.

Do you confront them honestly and show him how you are trying to get better and how you have his best interest at heart?

He eventually had 4 open-heart surgeries, was depressed, etc.Now that it is 20 years later, comparing it to my well oiled Investment property, because of my prime location, the appreciation I received is far higher than his, my cash flow is also far higher as the rents skyrocketed in my areas, AND I spent WAY less in Medical costs that he did.While I don't want to attribute all the Medical Health issue towards these difficult to manage yet higher cash flowing properties, I can see what it did to him as he would call me asking advice on what he should do.If he were to add in the medical costs and health problems, over the 20 years, I'm so glad I did not go down the high cash flow route.I can enjoy my Investments because of the lack of Stress from all these years.

Low end rentals are very hands on and no for the faint of heart.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Brick triplex in a great location on main street in Lavale MD. Total of 9 bedrooms, 4 baths. Upstairs unit is 5 bed 2 bath, first ...

Sometimes REST is the best medicine for the heart and mind.

It is heart breaking to be required to allow things to happen that you know are going to create a scenario that will result in a huge failure for the applicant and a financial mess for you (it’s not if, but when), but that’s exactly what you need to do unless you want to end up with hundreds of thousands of dollars in legal bills and fines for fair housing violations.

If it's your business, do what you have to do, and let the politicians have the bleeding hearts. 

He has a huge heart and loves to teach.

Wholesaling isn't for the faint of heart, but if you keep at it, the deals will start rolling along.