Utility improvements.

If it's the difference between $1800 and $2200 but you have to cover utilities too, not worth it. 

Right now the only utility at the garage is power so basically I am starting with a frame and a roof. 

There are two main ways to utilize this exemption.

For example, I have a subject property that has 1682 SF on the main floor and 810 SF of finished basement (the majority of which is about 8 feet in height with the exception of some bulkheads to hide the mechanicals) and 271 of semi-finished basement that is a utility room basically (washer/dryer, freezer, hot water heater, furnace, some storage).

I mean myself and any bank would need more details, but if you utilize that large sum as a downpayment and have a small mortgage, wouldn't you easily qualify for the debt to income?

Outcome currently is a rented basement for $1,350 a month + $130 in utilities while I live in the upstairs unit.

Mgt, Landscape/Snow, tax, insurance, utility then debt service. 

Pay your utilities out of this account, and after the month has ended, you can distribute your cash flow from this account to your reserve account and your personal checking account.

Coos Bay - The main delay with application in this area is whether the property is on public utilities or has a septic system and private or public water source.