Run the numbers as if you leased the property from him at 10% x the value of the home( not including 1,000 acres) in lease payments @60% occupancy.

But, should ask, what is the occupancy for the buyer? 

If there's a family member or friend in a similar situation, and you can both align on the initial plan (location, home type, price, usage/occupancy, etc) you can pretty easily get a co-ownership agreement in place and even a joint mortgage.The benefit here is it might open up your ability to buy a larger place in a nicer area which could lead to a faster rate of appreciation and overall better living environment. 

Just need to stat under the occupancy limit.Also keep in mind basement needs to be livable square footage, ie have egress and proper ceiling height. 

The appeal, in my experinence, is a steady local base plus some vacationers passing through.I’ve got a freind who scooped up a place near the Ozarks and found that while huge cash flow was harder to come by, the consistent occupancy gave them fewer headaches over time.

Another option is to split the cost based on the number of occupants in each unit but this also means you'll need to adjust the charges as tenants move in/out, so it requires more work and I wouldn't recommend it.

Occupancy is down.  

@Zach Howard there is no agreed upon Classification in the 1-4 unit market.We've done our best to logically create a system for our market, mostly based upon relative sale prices, but also using crime rates, rents, occupant income and a few other variables. 

What is occupancy and rate and how does that compare to your competition? 

At full occupancy, the cash flow I just keep in reserves for repairs or help pay the principal.