My family lives in house and we rent out the duplex for around 4k total, leaving us with around $1100.

And also that may be one item to think of, what happens if you have to leave  and who will handle the place (ie outside local management)....

Then I would cover living room with new area rug, leaving tag on, put a great new doormat in outside and inside, add a runner in the main hall and a matching in one in the kitchen...give them some Casters for under furniture in bedrooms...

Guys & Gals:  ANYONE producing seminars always has something to sell before you leave. 

I noticed that when he asked me to make an offer it was one offer only(wholesale), basically a take it or leave it offer, and most of the time the seller said no.

CREATE  a great deal, leave some equity on the table, advertise it right and the knowledgeable buyer will recognize a great deal and the buyers will come.If you do that, your buyers list will grow along with your cash flow ........I always say, "Buy Low, Sell Low and do it Often!"

Keep digging and leave the rat race behind!

Adding to that, I would be fine to pay the tenant say $500 to leave the place in good shape.

I understand you want to leave some equity built into any deal you make, rental or flip, but to walk away from a strong deal like this because the owner won't drop the price to ~.70 on the dollar seems overly aggressive to me. 

Should be interesting if o get a response because I'm leaving to go offshore for work next week.