@Jeff Hartley you really have not mentioned if it is renting to a 3rd party person as if the basement is a separate unit, or if he is just going to rent it out to someone like a roommate type situation. 

Can only speak for myself - feels odd to say, but since the implication was made regarding my post, yes I'm a real person, a real investor, don't have all the answers (but am getting more of them every day), a member of LU (but nothing more), etc.  

For adults only I posted this before however it is a great reminder of a personas personality flaw.And to all of the females out there...

My current goal is to get them under contract and purchase them for a persona buy and hold portfolio, hopefully between 30-50% or more under market.

“Sales associate” means a person who performs any act specified in the definition of “broker,” but who performs such act under the direction, control, or management of another person. A

And he tried to test the landlord - if you accept this person as a tenant, be prepared to get "tested" some more.

I recommend this association to everyone living in Central Florida I meet who wants to learn about real estate investing in person (as opposed to online).A group of advanced investors and real estate related vendors (and myself) meet once per month for drinks here in Orlando; if you are in interested in joining, send me a DM and I'll let you know where/when.

If you qualify the person as a good prospect, I would go there unless its a long way away.If someone tells you they want to get $200k the first time you talk, and it ends up being worth $75k, I'm not sure if I would spend too much time on it,,but do your research,, often sellers have to be "walked down",,brought down gradually to the true price of what they own.I buy and sell radio station license,,I had someone that wasn't looking to sell, but I needed what they had,,he started out at $800k,,,we finally went to agreement at just under $400k,,but that didn't happen overnight, it was several weeks, lots of research, and we came to a deal that was good for both parties

if you are going to be active participants in the management company, then set it up as an LLC and pay each person a salary that is representative of the work performed.