While a CMHC insured mortgage is portable, CMHC homeowner mortgage loan insurance is available on a maximum of one property (1 – 4 units) per borrower/co-borrower at any given time.

I don't think life was given to people so they can live in a closet but for them to have experiences. 

As an example, I have a small bed/bath/closet w/ separate entrance at same location, probably 200 sq ft.

So I got a remnant at 12x16 and rather than pay extra for the bathroom floor I had the contractor use the remainder for the bathroom floor and there was enough left over to put down on 3 closet floors as well.

West Kitchen Wall, with water heater closet & West Utility Room WallPowder RoomSorry the "tall" pictures didn't upload correctly.    

You might consider starting with a closet auger, since toilets are a sure clog-up, regardless.

Doing this also increased the size of the master closet to a true walk-in size, and required us to shift a closet in one of the bedrooms to a different side of the same room. 

There were a few waterworn floor boards (near the kitchen sink and in the closet)  - if I had to estimate, max 5 sq. ft. in a 500 sq ft. room.  

It does have full size kitchen, big closet and washer/dryer so still a good vacation home option for a couple with no kids.

I just replaced one in a rental that was 13 years old and in doing so considered it's location (interior water heater closet) as a garage location may be not as risky if things go south.