First, I would check your local landlord-tenant laws to make sure you know what you can and cannot do, or better yet, spend the money for a 30 min call to ask a lawyer.

Based on what I've seen, there's a very good chance they will not obey the law, pay taxes, be a good neighbor, etc.

I was told by my closer today that she cannot Quit Claim the Deed into an LLC, but said it would have to be a warranty deed because they cannot prepare as the under writers came down on title companies as it is seen as practicing law.  

*I hope I'm not breaking any copyright laws, Heather and Brandon, by paraphrasing your book: The Book on Managing Rental Properties.

The only thing out of state I would consider is PA cause it's still on the up and you can potentially hold and rent anything that doesn't sell for a decent rate where the rules/laws are better.

You would be in an unsecured position and the cost to manage and service the loan (which is required by law but most ignore) would add a cost to youJust sell it at reduced price

If you are comfortable with renting by the room, check the local municipality laws in the areas you are considering to make sure there are no restrictive laws about operating boarding houses.

If you discuss anything else, you will be in peril of violating real estate licensing law. 

@Aaron Antis check your state and local laws because even if a lease has an early termination clause for the owner, statutes may override the lease.

Similar low maintenance, they aren't subject to Condo laws, and you could get financing much easier, particularly FHA, unlike condos.