You are possibly leveraged too high to make this deal with lender. they may be skeptical, because you may not have enough skin in the game(YOUR MONEY) some one financing the down payment is normally a no from a lender on investment property

Make the payment similar to his rent so you know he can survive and pay on time .I’d rather have the guy give some money down so he has skin in the game . 

But if you have thick skin and can deal with some BS, there’s money to be made there. 

Just a few ideas, but there are a million ways to skin this cat, it's exciting to think about.

I got paid off you got the house.. and in those days you usually got 5 to 8 grand back in cash out... now that was too aggressive and when landlords turned the keys back in in 08 to 2012 it was usually those with no TRUE skin in the game..

I thought it was better to bring him in as a partner (with skin in the game as well not just sweat equity).

Finish the space, so you can disconnect the kitchen if you have to.My main concern for basement apartments is moisture. 

If he’s getting under your skin, you really should consider evolve.

Where walls opened up because It takes awhile to get the moisture content down in the structure.

Not interested in a no-money-down strategy as I am looking to REPLACE my income as fast as possible so I'm willing to put a little skin in the game.