Believe it or not, I actually saw this kind of setup very many years ago when we lived in a relatively good barrio in POP... It was a house, but you could not put the compressor outside as indeed, it would have got stolen in less than 24 hours... There was one bedroom in the house that indeed had no windows and was extremely hot, so the tenants installed the inside part into that room (obviosuly), and the outdoor unit on the living room wall... Yes, it did in fact work fine for the bedroom, but all the night the living room (obviously) was burning hot...