Personally, I wouldn't own a rental that is negative cash flow, but you need to compare your performance with what a multifamily property can do as well. 

So really, this is a no money down owner financing deal, but the liens have to be paid before we can move forward.I'm looking for $175,000 which will be secured with the 3 multi-families I mentioned above.

Find someone with income that qualifies and see if you can get a double security deposit.

You get a NROC deposit greater than any you had to put down to secure the property. 

This is another reason I defer to MFR's because there is more emphasis on the property performance like what you have shown vs. your personal income with the SFR's.

If the answer is that he was just putting it in the bank, I would explain how he could be secured by making the loan to me and collect higher interest on his money.I would also offer him one other tidbit that worked in numerous situations.

I recently worked with a small town bank to secure financing for a deal.

I pay mortgage, taxes, insurance, repairs, management, etc.Account B: Tenant security deposit is held separate from all other funds to ensure I don't spend it.Rent income should be more than enough to cover the mortgage so why are you putting money into the account?

He has also performed maintenance on the property without requesting or receiving  compensation.

I think the most important thing is to have a very specific agreement of the work performed for what pay and/or rent reduction.