Do not be ashamed for your honest work, but your income doesn't have to be your limiting factor.

FHA does not have a clear definition in their guidelines, but most lenders have stability standards, depending on several factors (contract length, previous employment, etc).

I'm a broker, so commissions aren't a factor, and there's no loan on the Georgia properties.What do you guys think? 

You pay taxes on 401k withdrawals whether you are 40 or 60, so the 10% penalty you get is what you have to factor in with your decision.It's impossible to say whether stocks/bonds in your 401k or real estate that you acquire will do better over the long haul.

This is significant for those two factors.

To piggy back off of Andrew, when I did my first BRRRR I didn't factor in holding cost.

TL;DR: Recent article suggests rent hikes aren't just about landlord greed - rising costs across the board are a major factor.

Of course if you are going into it with a long time horizon that is great and you might think it may not matter, but you have to factor it in. 

Given these factors, should I consider renting to this person? 

Yes, you should be able to do this, so long as the DTI for the Conventional loan works once the new minimum pmt on the Heloc is factored into your debts.