But, there is no ROI on this investment since you need at least 7' ceiling for it to be living space.

There aren't many unfinished livable basements in Phoenix....I've only seen one out of hundreds of properties that had the ceiling height to be converted to an extra bedroom or bonus room. 

It also depends on the physical characteristics of the basement, as others have pointed out - fire egress, ceiling height, window size, etc. all matter and affect whether the city will allow the occupancy. 

If they want to do that I want lender to put a CEILING on rate increase.

I have had lights/ceiling fans/refrigerators etc go out within the first few months of acquiring properties, and I have had properties that I didn't spend a dime on for a couple years.  

I mean, if you have a snake nest falling through the ceiling like @Nathan G. posted today, you might want to get that taken care of : )  Otherwise, if there are no signs of pests or termites there is no obligation to do so. 

But the kitchen popcorn ceiling had a huge stain from the leak.

During a snowstorm in Feb 2021 the roof was damaged and the ceiling partially caved in.

BUT, there are ways to do a garage conversion right, raise the floor to match, make sure the ceiling matches or does not look awkward.

Our team hasn't recovered and we want to just give this one away and take the loss.Approx1250 sqft, potentially 1500sqft, currently 2bedroom, 1 bath, office  area, open kitchen and living, high ceilings, laminate throughoutSignedBeyond Frustrated