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It should be ok to remove the mod after you've disposed of him.
After you remove the mod you'll get a pop-up the next time you load the game saying some content couldn't be found - that will be the mod you've just removed.
It's probably a good idea to back up your save anyway though. =)
So I guess he's just a useless NPC, that has stuff he shouldn't...
I understand that some people just use console and that's fine, but some people prefer to use throw-away followers (I guess it can be easier and feel more 'natural'?) and this mod is just a small freebie for those that do.
I have not yet gotten into the Boethiah's Calling quest. I now know that I'm going to have to sacrifice a follower when I do get to that quest. <sigh> Oh well, serves me right for looking at mods before completing all the quests.
It should be that, but if its not let me know.
BTW, you can fix the gray face by selecting him in the CK and hitting Ctrl+F4.
And I'm pretty sure the beggar would appreciate the home. After all, he trusts you!
Maybe I'll just download the mod and let the beggar live in one of my extra houses :)
Stupid casual mods for poor kids.