Adding rooms in a basement with ceiling height under 7'

[Jesse Malsom]

I am in the middle of a flip and learned that the ceiling height is too low to add bedrooms in the basement.  I called the city inspector and asked if I could add the rooms, including closets, and call them storage rooms when I list the property.  He said no problem and I was later able to get him to state that in an email.  Once he came to inspect, he said he would not sign off as these rooms are intended to be bedrooms.  Not happy!  My question is, does it matter what the rooms look like as long as the listing is a 2br instead of a 4 bedroom when we sell?  Does anyone have any suggestions otherwise?

Thanks