I rent a property with a few extra filters in the closet.  

AWESOME master-on-main w/vaulted ceilings, his& her closets, dual vanities, garden tub& separate shower.

After having to cut a hole in a closet wall and pay my plumber to replace both (ending up with a large, ugly trim ring) all was well.

The area experiences high rental demand and around 5% of homes in the area are owner occupied.Asking Price: $1,350,00024 Units, 8- 1Bd/1Bath & 16-2Bds/1Bath 14,400 sqft, built in 1958, 2 year old windows, laundry facility in basement, hardwood floors, tiled bathroom, walk-in closet, private parking lot for $1,350,000.

The seller says the house has 4 bedrooms but the 4th is an addition done by an owner so I'm guessing it is not professional and to be safe I'm going to assume it doesn't meet code and is just another room (or closet).

4) Is it necessary to have a Closet in the bedroom or not?

As for your question about reducing from 3/2 to 2/2 I have also done this successfully in Scotts Addition, we bought a row house on Leigh street that was a 3 bedroom 1 bath and turned the small 3rd bedroom into a walk in closet and a really nice laundry room on the second floor.

I have a couple of 110v portable units.  

They have closets but do not have egress windows.Can this house legally be listed on the MLS as a 4 bedroom?

Huge upstairs with bed and closet already to go.