I have been communicating to them via text messages so far, and also receiving payments with extra charge for being late. 

@Leslie ChongAll 24" compact laundry units are expensive ... here in Canada, they are almost double (or more) a full-sized, front load unit with equivalent features.I have read that in some jurisdictions, vented compact laundry units are not longer permitted.  

While smoking is not permitted in my rental, a tenant asked if vapes were.

The extra work to see it may be an issue.

ONCE your accept co-signers you set a loop hole for anyone else that want's to rent that doesn't qualify.. so you'll need to let others rent with co-signers.The only clause we had for using co-signer was if applicant was a student and then we would permit co-signers.She wouldn't qualify in my standards.

Two things could happen, you convert it, you apply for permit, the city inspects it, city calls code enforcement to check on other parts of the house, decides to give you citation, then you fix that, chiching ; or, you don’t qualify, you get a citation, you are forced to fix it, double chiching.

I have a few units in CP and some in the clay/pinson areaIf it is about to have a turn over then raise it to the 900 or better, if they are staying another year I'd raise it 30-35 just enough to make some extra money while not driving them away. 

This conversion was done without proper permitting and approvals from the city and obviously the additional bedrooms are not showing in the county records.

I would potentially house hack, but at this point, I would prefer the extra income.

Eventually, I will be utilizing the BRRRR method when financing permits.