I'm finishing a 4th bedroom and bath not just to get extra rent but to also be able to learn how to appraise and estimate costs in a controlled manner. 

Do so in a timely manner.

@Cameron Belknap FHA loan rules in HUD 4000.1 mention not counting the basement as part of the Gross Living Area; however, part of the FHA requirements found in HUD 4000.1 includes a section on “converted spaces” which states:“The Appraiser must treat room additions and garage conversions as part of the GLA of the dwelling, provided that the addition or conversion space…is accessible from the interior of the main dwelling in a functional manner; has a permanent and sufficient heat source… and was built in keeping with the design, appeal, and quality of construction of the main dwelling.”Furthermore,“The Appraiser must analyze and report differences in functional utility when selecting comparable properties of similar total GLA that do not include converted living space.

I believe the tax laws have changed making interest on a Heloc only tax deductible if you use it for your home or to buy another so there's real incentive to use it in that manner. 

@Thomas S.Surely you could have delivered this information in a more respectable manner.

IMHO he did not keep a professional manner and did not handle the issue in a customer friendly fashion......I am glad he refunded me at this point since I am not interested in rolling the dice on any more $1500+ programs but I was shocked to see that he did not care to better explain the reasoning behind the waiting time for setup VS the guarantee time limit ......or even try to level with me as a customer.

Another option is to speak to the city and see what kind of support they can offer.Where is this community located and is there potential job growth and a sustainable economy in the area?

The economy is primarily based on fishing and forestry, which I don't really consider to be sustainable sources of employment in the long-term.

For your safety and that of your other tenant, if you feel personally threatened in any manner, seek professional help, which may include law enforcement.We're rooting for you!

But are they sustainable?