I too have never heard of a requirement that a closet needs to be present to be called a bedroom, it is too funny.

Along those lines, if the owner gives you a very FIRM "NO" when you present your proposal to rent their home for the purposes of doing STR (short-term rental).   

Is there a way to use a 1031 over time to sell rentals and use the tax deferred money to buy a larger purchase?

There's nothing wrong with where your your present cleanout is located.

@Craig Daniels -while I do agree with others that 30% down for $175/mo cashflow is not a good investment, I will present a slightly more positive response.

I drove across town to one rei club meeting and paid $20 to hear a presentation by an appraiser that taught me nothing as it was very basic...was supposed to tell me what people are paying up for locally per the advertisement but he couldn’t answer that.

The concern with the DSCR loan is that I need to make the property present as though it's rented to individuals during appraisal (tough since it's a working rehab facility now) and must create another lease that shows the tenant as personal and not a company.

These are high quality properties that require very little or no deferred maintenance for the Buyers.  

If you’re interested in investing in real estate, you can consider doing so with a Self-Directed IRA to defer taxes on capital gains until you actually withdraw the funds from your IRA.

The best deals I find are usually the result of an agent’s lack of familiarity with the area or a very poor listing presentation.