The bank may say it's not fully habitable and reject the loan or make you escrow funds to get the drywall fixed.  

You have to remember each offer takes about 20-30 minutes to right up just to be rejected for being to low.

Do REO's counter or just accept/reject?

Without verifiable income, they would fail my qualification and be rejected.  

If you reject a tenant based on any of the protected categories you could face a discrimination law suit. 

I too got discouraged from the rejections and uped my offers.

You may need to negotiated lower or give him this priceSo what you just learn how to do is to simply and easily get the price down by lease 8-10% or more of the original asking price__________________________________________________ Step 5 – The Magical 2 words to use to never lose a negotiationI use this all the time when I deal with sellers.It’s one of the strongest things you can do to use these 2 words.What if they were just 2 words that would guarantee would never be rejected by a seller ever again?

Should the seller reject your offer, call them back a few days later to see if they would reconsider.

I say "hopefully" because I've found that everyone with sketchy credit has a sob story that somehow differentiates them from every other person with sketchy credit.Here in Texas there have been some legal opinions written that state a rejected tenant could demand his/her application fee back if you don't list the screening criteria on the application, giving them a chance to see it before they actually pay the application fee.Just make sure your screening criteria doesn't touch on anything that could be considered discriminatory.

I think it would be better if he listed a few rejected deals and went more in depth about the ones he kept.