currently I am renting to Montclair state students in Caldwell, student demand is for sure there but that will hugely depend on timing of the rental and proper marketing. 

I’m open to other ideas.

Hey Ryston, its a great idea to househack and get started that way.

Oscar, Could you refer the attorney name and give some idea of what it costs to negotiate the lease?  

The idea of a "killer deal" will do harm in delaying purchase or preventing purchase at all.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Ideas welcomed!

No idea on the notice period required, depends on your lease and your particular state laws. 

That's a start to give you an idea of the market including the supply and the demand.

Current ideas are to view it as a partnership, or an interest-bearing loan from me to him.