okay here is a little story about this house. i bought the 1200 sqft house for $14k from a owner, and spent around 12k for remodeling such as a new wooden floor, paint inside/out , window and tiles and some new dry wa...

You can choose which debt to target more, such as higher interest debt.  

Since we don't have many flying insects in our area and screens are not required by local law, we can choose not to have screen doors.

My understanding is that I can choose how long to set the contract, but the longer the term, the higher the premium. 

Yes, if you choose to do this, you will need to learn about w2, taxes, insurance costs, time sheets, audits, all that good stuff of being an employer, which the insurance agent should be able to provide.

Once you know about what the interest rate level of your financing is (in the above case I choose 5%) you then have to play around with your down payment percentage.

Then if he does in fact get out, we will have a place to live, and if he chooses to stay in, we will have met the occupancy requirement and we could just rent from there and move wherever. 

You are choosing the latter scenario if you never take action to change your trajectory. 

(Note: rent would cover PITI with $2K going to P and an additional couple hundred to spare per month not accounting for maintenance.)Obstacles/Questions: no construction experience and builders are currently asking top dollar; not sure if partnering is an option (not a request, just wondering if it is a valid option); what might be the financing options of whatever route we choose (e.g., HELOC on our current house, construction loan, etc.) with goal of being in a decent cash flow position preferably in a couple of years. 

Since my parents could not pay for my education I had to choose Scotland, because the education there is funded by the government.