Actually, I couldn't sleep if I had carpet in a bathroom. 

I wouldnt loose sleep over it.  

Equity sitting idle might make you sleep better at night, and that is worth something, but that is still not the best use of that money, financially speaking.

It's worked for me in a suburb of Los Angeles (45 minutes to Hollywood, 1 hour to Downtown, without traffic mind you), but I "cheated" a little in that I rent out the bedroom in my 1-bed unit and sleep in the living room.I guess my message is that if you want to househack and make the numbers work cashflow-wise, you may have to look on the outskirts of the big city, whether it's Atlanta or L.A...either that or hack it in a war zone...but that will likely cost you more in the long run (bad tenants, evictions, damages, etc.).

A MIL suite is where the "mother"-in-law sleeps, not lives full time.

If you are a low risk individual, just sell it and buy a different investment that will let you sleep easier at night.  

Tenant agrees to refrain from making loud noises and disturbances and tokeep down the volume of their music and broadcast programs at all times so asnot to disturb other people’s peace and quiet.SUBSTANCE ABUSE. 

Are they causing disturbances to other tenants?

I have heard and seen lots in the last 10 days about dropping markets, but people still have to sleep somewhere and, interestingly, they keep having babies! 

One of them had people sleeping in it, so I was only able to peek into one of the bedrooms.