Not sure that's way cheaper than what they cost actually, depending on the details of the agreement, I have a virtual server for $15 a month and I'm allowed to resell hosting. So for the same price I could act as a middle man between someone here to accept bitcoin as payment, not looking to get into that business though, just saying the offer of hosting for 20 btc a month isn't totally out there.
The first sever he leased to me was for a dedicated server, 4 cores, 2 gigs ram for 10BTC a month.
These are dedicated servers he was selling, not a VPS.
You are right though, that is a viable business model for anyone interested.