Adding value would be painting (helping the smell) and not cooking any more to reduce the smell.  

The moment you walk in, you can smell the musty air.

Double check you number and get an idea if the deL works sans the poolIf you do not close you are fighting an uphill battle for the EM.

House hacking is a fantastic strategy - I wish I won that battle with my wife years ago when we bought our first house :) One thing to watch out for with house hacking is your criteria.  

You’ll need to make sure that issues regarding additional capital are addressed up front as well, just in case a legal battle erupts and your attorney bills start to add up beyond what was initially budgeted for.

Cheap blinds, bright bulbs, clean fresh smell, right temp in the house make a huge difference when someone comes to see it.

You are fighting an uphill battle.

In Weber county, there is no shortage of $150-175K existing construction so there isn't a flight to townhouses for first time home buyers like there is in higher density markets.End of lifecycle issues present a major problem for townhouse communities and it's a tightrope walk that HOA's constantly battle with.  

Maybe there are enough legal loopholes to let this happen but ethically it still smells bad to me.

In painting the shutters, you might lose the paint battle, but you'll have won the investment war by lowering the amount of time you spend on the house.Incidentally, if this house if for a rental, you ABSOLUTELY don't want to get on the wrong side of the HOA.