A good word of mouth recommendation generally contains this "You gotta rent from that Paul drug screening guy, his places are fully furnished, stocked and it's cheaper than any motel. 

Yes, you probably could create a wraparound mortgage containing your existing mortgage within it.You might have to comply with the regulations of the Dodd-Frank Act.

Bathrooms, toilet rooms, closets, halls, storage or utility spaces and similar areas are not considered habitable spaces.Habitable space requirementsCeiling height-RequirementsR305.1 Minimum height.Habitable space, hallways, bathrooms, toilet rooms, laundry rooms and portions of basements containing these spaces shall have a ceiling height of not less than 7 feet (2134 mm).Exceptions:1.For rooms with sloped ceilings, at least 50 percent of the required floor area of the room must have a ceiling height of at least 7 feet (2134 mm) and no portion of the required floor area may have a ceiling height of less than 5 feet (1524 mm).R304.4 Height effect on room area.Portions of a room with a sloping ceiling measuring less than 5 feet (1524 mm) or a furred ceiling measuring less than 7 feet (2134 mm) from the finished floor to the finished ceiling shall not be considered as contributing to the minimum required habitable area for that room.Floor space- RequirementsR304.1 Minimum area.Every dwelling unit shall have at least one habitable room that shall have not less than 120 square feet (11 m2) of gross floor area.R304.2 Other rooms.

California Closets and Container Store Elfa are good if you're looking for more high end or if you can get a volume discount.

I was also told that because the mortgage does not contain a power of sale clause it can not go through a non-judicial FC.  

I have a background in construction, I'm not a GC but I work for a large commercial GC at my day job and feel that this may give me potential leg up in this niche/ stratgey.The half-baked idea I have now is to build a container house duplex and live in it and rent out the other half.

What you will notice about all responses, is all of them contain an assertive solution. 

I have heard some of these contain asbestos...

A set of drawings with floor plans, containing a finish schedule and specs, go a long way in this regard.

Many of them contain provisions that may make your lease unenforceable.