Otis sleeps anywhere he pleases. On the bed, on the couch, under the table, on my feet, on my head! He doesn't care, where ever his eye close is his bed for that moment. He will sleep where you train him to. If you want him in the crate, he will learn to be sleep there.
Some bullys have allergies. Some bullys dont. Otis does not, I got lucky with him in that respect. Abby didn't have any either but I've had several fosters with severe allergies.
The water should be changed several times a day. You will start to notice stuff floating in there or saliva in the bottom of the bowl of you don't. For health reasons, it's best to keep it fresh as often as possible.