Equity in your home won’t cut it.

Without knowing specific financials, I would say cut your losses and sell.

I don't like a straight sub-to. 

There might be a time to cut losses and just sell it, or if it makes sense your other plan could work, as long as you pull permits and do everything carefully.

Renting has helped me cut monthly living expenses by ~30% allowing me to invest in other businesses.Hope this helps!

You have NO leverage, no matter what he builds or does not build, except for the developer saving some money in legal fees and cutting down on mesne profits damages.

So... how much of an impact would it be to just go straight to cookie cutter Rooms to Go stuff for the big ticket items? 

Their interest, like a real estate agent, is simply to churn incoming flows of money at a high rate in order to get their Commission and their cut.

Based on 27.5 yr straight line depreciation, that's about $1,700 of missed annual depreciation; $25,000 over 15 years - and at an ordinary tax rate of say 30% tax could amount to $7,500 off my current tax bill. 

I personally would fix the 3 windows and maybe consider cutting the rent a little more to gather more interest.