Unfortunately, the deals are even worse than that, because there is a cost associated with the downpayment.Here's how I would evaluate these deals:Deal #1:Gross rents: $2,400Operating Expenses: $1,200 (half of gross rents:NOI: $1,200 (subtract operating expenses from gross rents)Mortgage ($249K, 30 yr, 6.75% NOO): $1,615Cash flow: $415 LOSS per month (OUCH!)

What you have here is someone that is using subtracting PITI from the gross rents and calling that cash flow.

If your minimum monthly Cash Flow criteria is $100 per unit subtract that from the NOI to see what your maximum P&I payment can be

You have a high paying W2 job, let's say $150k (after subtracting 401k).

Subtract 4 years of depreciation and add whatever capital improvements you made. 

So if rent is $800 subtract $400 a month in expenses, any you have $400 left to over your financing.  

So, take your BAH, BAS, and Base Pay, multiply it by .6, subtract your debt, and then you will have your max qualified payment.  

I will approach him with the understanding how much it is going to take ($) to get to the same level as others.Through your analysis these motels sold btw $ and $ and you subtract your cost of rehabilitation. 

If this was conventional You'd probably just subtract your rent from the profit in the way that had the minimum tax implications.

I’d also consider taking an average monthly cost and just building that amount into your lease - I usually subtract a few dollars so no one can complain that you’re over-charging.