This means that someone who makes $43,000/year would now eligible to buy this room condo, and have access to a vehicle through which to build equity in an asset as an alternative to paying rent. 

So you didn't do anything wrong, you just didn't know.As for alternatives, most counties have an appeals process... but you will likely lose if you go that way.  

In all the above listed alternative investments, there is seldom any discount pricing and you give up control.

What are some good alternatives?  

I would still need to subscribe to a streaming service for cable tv, so cost savings wouldnt be much (or a wash), but otherwise it seems like it might be a viable alternative?

Alternatively, if the bank ( assuming there is a bank) is fine with it, you could negotiate a credit and escrow the funds to be released after you do it yourself.  

The alternative to that is going to the Cape, Western MA, as well as adjacent states with coastal/lakeside properties where many of us New Englanders vacation. 

Before I order a second appraisal, I would investigate an alternative lender.  

My professional background is data science / analytics, which means analyzing cash flows will probably come more naturally than building relationships, which apparently, is how one finds deals worth making.Are there meetups in these areas I should attend (digitally at first, presumably)? 

Beyond that it's not in my nature to complain; I just like to identify problems and solve them, and if I can't solve them then either accept them or move to greener pastures.