I just registered my couch as a service dog. 

If I did end up doing the Re-Fi I would upgrade the couch and floors to all hardwood first to hopefully get it re-fi'd at a high value of closer to 230k.I would take the 30k in cash and use it as a down payment for a househack where I live in NJ.

Some of them even end up living on somebody's couch or in the street. 

Plenty of lenders will use it.However, if you are trying to use rental income from someone renting your garage, room, couch, floor, etc. then no lender will be able to use that. 

New couches, new big screen tvs, new beds Everything was new.

Obviously though, the room has to be something but if it were me, I'd put something else such as a couch, TV, Pool /ping pong table, like a game room kind of.

Two of the same 5br units ... one is filled with your '90s overstuffed black leather couches.

This is the real mic drop esque game changer everyone is seeking. 

At my peak, I was sitting on the couch with my feet up and a computer on my lap so long that I needed knee braces!

Did I have the stress of desperately having to find a willing comrade to allow me crash on his couch until I got a place of my own, yes.