You could just write on a napkin "I offer to buy this property at ____ for $20,000" - but I would strongly suggest listening to @Chris Muller and paying someone to have a contract drawn up as a template.

Because it was ALREADY law and it only "clarified" the existing law to include this activity so there was no more "interest in a cocktail napkin" bs.That goes for every state, but others simply have not "clarified" yet, but are still cracking down.

Some quick back-of-the-napkin math indicates that you're currently giving your tenants about $11k per year in rent discounts on these 3 units (Assuming you could easily find renters at $875).

I have never tried to be such a smart alec so as to draw a smiley face on a napkin, call it "artwork," and have someone borrow funds with the napkin as collateral, even though the guideline literally cites "artwork" as something you can do this with (give me a call if you own a Picaso, and we'll give it a shot :P ).

Again your expenses may be less I am just doing this for example sake and back of napkin math. 

If it was written on the back of a napkin or the rental agreement came from a cracker jack box,  time to update it. 

I don't know if you mean PMI or if you meant PITI (principal, interest, taxes, insurance) --- But just some napkin math here... if your PITI is $800/mo. and your rent is $1,250/mo. then expect to cash-flow @ $225/mo. after all expenses are accounted for, again this is a basic analysis.

Even in a sanitary sink at restaurants,  there is a time each item must be submerged before the item can be sanitized.

It can be written in crayon on the back of a greasy napkin, but it has to be in writing.Suggestion: Get your real estate license. 

Ended up calling a plumber to unclog the sink he told me it was that the tenant has been trowing away napkins, food etc.