This should be pretty easy to determine through comps of similar houses, what they sold for per sqft, then do the math.2nd option, LTR. 

@Andrew Kerr made some great points and I've (sorry, Andrew) stolen his thoughts around CAPEX, maintenance, etc. for other folks in a similar boat.

I had a similar situation with my contractor who works on all my projects.

Assuming your market is similar to mine, you will have to discount your price because the master suite being in the basement.

Tony, In reading your bio and what not I see you deal with similar areas of investment as myself.

MIke,I am implementing a similar strategy with the bandit signs targeting the same types of neighborhoods seeking lease options.

If the peak price for similar houses was $2 mil, then $1.3 might be reasonable.

I then should be able to get a better picture.The average rent for the similar type of house from the Section 8 property listing is indicating $150 higher than my asking , and I’m aware of my asking is lower than the comparable non-Section 8 property by about that much as well.

Similar for taxes.Money holding costs can usually be determined pretty closely, based on your loan.Richard's forumla is the one I use, though I like to come in below that.

Place bandit signs around town saying something similar to your classified ad.6.