Gas leaks, earthquakes and natural disasters that disrupt water lines and services, overflow toilets, shut-offs that are corroded and don't work.

This doesn't fit the situation you described exactly, so it's still a bit of a gray area, but here's what I found:  Mixed-Use Properties- Properties that have a business use in addition to their residential use, such as a property with space set aside for a day care facility, a beauty or barber shop, or a doctor’s office are eligible per the following:  Property must be a one-unit dwelling that the borrower occupies as a principal residence  The borrower must be both the owner and the operator of the business  The property must be primarily residential in nature  The dwelling may not be modified in a manner that has an adverse impact on its marketability as a residential property. 

It would allow you to add a much more desirable larger vanity, as well as make everything feel less closed in.Another solution would be to keep the tub where it is but move the plumbing so you could replace the dividing wall with glass block and give not only the illusion of a lot more space, but also allow natural light to flow and give a modern edge to the room for a fairly small investment. 

But how about leads from Flippers, people said who fail to rehab or have the money to do it and will naturally consider it a fail investment?

Multifamily properties in this area are not common; they do pop up from time-to-time though~I think you'll see that there are a lot more STR investors down here over LTR investors, just due to the nature of the market. 

Like you mentioned, you want to make sure the cash flow is adequate especially when you move out.

Unfortunately in our area we don't have natural gas and oil tanks are the standard. 

Sorry, responded without reading, there were two similar posts of the same nature which were the same.

If you don't get  audited then the consequences are more conscientious in nature. 

The high end nature of the St Louis market properties attracts higher quality tenants and provides a better exit strategy environment than most other markets' properties."