For the most part, I can see a fair 10% increase, that’s normal and in line with the market place.

In that perspective, I though the $197 could be a fair deal and worth the risk.So I go to the 3 day.

I agree with one person who replied saying that you really have to know that rental market area comparables and cap Rates in order to fairly judge the cap rate for your current property.  

Have fair standards that you apply to all renters and applicants (income requirements, criminal background checks, identification and document needs, etc.).

You didn't say what the price point was, but 20% down would generally be adequate skin in the game and enough to cover repairs if you end up getting it back. 

I have 15 years experience as an on-site property manager in California which requires no licensing but fair housing training. 

They now like to see fair market value for the home, regardless of condition.

I think it should rent for $1200 but went with $1150 because section 8 fair market rent for two rooms in Burlington county is $1156.

You want to keep this mixture off of your skin though..

And the 10K can be used as your contribution/skin into the deal.