You could sell this property, but you'll definitely have to disclose this and the process will be more complicated.

But I can sleep well at night knowing that I am not taking on unnecessary risk.  

If I do rent by the room, that may complicate things with people going in and out more often and needing cleaning more often.   

But thought that would take more to manage and thought living out of state would make it more complicated.

Don't make it more complicated than it has to be.

From IRS audit experience, think of it this way:If the auditor views the hours as “unnecessary” OR over the top that had no bearing on the successful operation, they will disallow.Real world example: You live in Colorado and have a STR in Arizona.

If things get complicated, then yes, employ the HVAC specialist for their expertise.  

It's really not that complicated though unless you try and get super creative. 

Am I over complicating this?

I don't know if this makes it easier or more complicated, but our upper level may not have any gas services at all (husband is going to the property tomorrow to see if upper water heater is gas or electric, and whether washer/dryer in each unit are gas or electric).