I think the $800 will appeal to the tenants even though it would more or less equate to a refund for the days that are already paid for. 

Income of Recently Discharged Veterans (continued) (2) Voluntary Separation Incentive (VSI) Annual payments Taxable in the year received Include in effective income Calculated by multiplying the veteran’s years of service times two Requires a minimum of 6 years service (equates to a minimum of 12 years annual payments) If the veteran receives both VSI and VA disability compensation payments, the VSI is reduced by the amount of disability compensation.However, if the disability compensation is related to an earlier period of service and the VSI a later period of service, the VSI is not reduced by the amount of disability compensation.

And without the risk associated with borrowing for fixed assets on your own.There's no real downside to this equation as long as the DSTs are solid and your focus for growth is on the cash side. 

Bab Adetiba I’m not sure what state you are looking at but My initial thought is you may have to add payroll into the equation.

If you’re by the book on having that as your primary and your job takes you elsewhere I’d equate that to someone going on vacation basically.

.- Does the down-payment on #2 equate to the equity he's giving you?

From a valuation standpoint, you can't really run any facility for under $5K per year management expense so once you add that cost into your equation you are looking at an NOI of $6K or so,  With that the value would be around $60K...and while I get that you will be self managing, I doubt you would agree to do so for the next owner for free of charge. 

Of course, that return comes with some significant risk, so that always has to be factored into the equation.2.

Well, to start with you should not equate enjoying yourself with spending money. 

Certainly with an older building that has been mom and pop managed for 30 years, there are plenty of opportunities for improvements that don't necessarily equate to added value (hot water heaters, French drains, new electrical service, etc).