@Edward R. the structure here sounds like a pretty typical BRRRR transaction. 

So, that any payment you receive pays these bills FIRST leaving their monthly rent unpaid.

@Jaquon Miller, while there are certainly some lessons that are learned from fix and flips and BRRRR that may translate into syndications, I would say it is not totally the same.Syndications require a far more in-depth understanding of investment finance than the typical BRRR or Fix and Flip.  

I realize this may seem ludicrous to most, but none of the typical apparent options are available.

For higher priced area buyer can go to typical flat listing buyer agent (max 10k) or dual agent structure.What's certain is that buyer need to do more leg work these days when buying homes.

Is this lease valid without receiving a deposit?

It's a pretty comon source for private lending since those with self directed IRAs are typically looking for alternative investments to place funds in.

I was fortunate enough to receive a gift of equity on this property to cover the down payment and my mortgage is around 168k.

There are many sellers right now testing the waters with prices that typically don't make sense with today's rates.That being said, there is also a psychology behind pricing properties to create true interest and demand.  

That's the retail price you received less the wholesale price you paid.But, its not that simple.