Reserves cannot be derived from a gift.

This is not even considering the tax benefits nor the income derived from that asset over time.  

If your low income tenants are a pain to manage, maybe trade into better neighborhoods or into commercial, outsource to a PM, so many options. for me real estate ( those of us who derive our commission income from it) this is a lifestyle choice we are independent contractors and as such we have freedom to do whatever we want..

Derivation section.I can and have created my own General warranty deeds too.

This is typical for real estate transactions involving an SDIRA.UBIT and Debt-Financed Income: The Internal Revenue Code imposes UBIT on income derived from debt-financed property.

While they do seem low to him I do think it is important for you to explain to him your math and why/how you have derived to those numbers.

First off, the service in question and any derivative of this service, is a fringe service.

If it is multi family, the value is generally derived based on the rents, which is different than a single family.

The shorter tenor is easier for the lender to hedge the interest rate risk when it's providing the borrower a fixed rate loan (that's not done through a derivative).