$50 is the most tenants will pay here without looking to move...the other reaction is feeling they need the house fixed up to market state and ask for improvements to get their moneys worth.Then with each lease renewal, raise again until you hit marketrate minus good tenant discount.

My initial, unofficial reaction is yes for the roommate portion of the post.

And now we’re seeing the reaction 30-40 years later (limiting of replacement cost in high wind/hail states). 

I should be taking it one goal at a time, so my goal right now, is just to get an appointment (so far I had two, but I don't think I did well on those either) The houses were not in good condition, had tennants not paying rent, but still the guy is looking at the rehabbed house across  the street that just sold for X and things his house is worth the same amoutn, or a drop less, so when I made my offer to him it was like I totally insulted him based from his reaction.  

Thanks for the immediate reactions folks!

Going from $400 to $600 is likely to produce a much stronger reaction than from $2000 to $2200.What's the demand like? 

What would your reaction be if you later found out that the tenant is the sole owner of XYZ, LLC?

Wow, wasn't expecting such a reaction, thanks again everyone and wish you all luck in your endeavors also. 

Even if there were no issues at all I would have still posted here to see some others reaction to the deal.Now to give a shred of life to this dead thread I'm going to ask some opinions on the numbers.

Grrrrr....My first reaction was what a crock of crap, but my second reaction was to wonder if this is an industry norm.