Inspected 57 year old home with a 17 year old water haeter. The water heater was located in a hall closet which had full louvered door leading into the hall. Also, in this room were the washer and dryer. Obviously, this set up has been in-place for 17 years. Just need some feedback on your thoughts.
It’s not a bed room.
Is there a mechanical vent in the closet for moisture control? If so, from that alone or with a negative pressure created by the dryer when it is working…there could be the possibility of backdrafting or flame rollout. Operate the dryer (and vent, if it has one) and do a smoke test on the water heater exhaust. Check the area around the burner for evidence of flame rollout.