However what happens when the tenant vacates and now the unit has to be turned over/takes a few months to find a new tenant and during that same period of time the sewer line goes and you get hit with that $15,000 cap ex expense in addition to the vacancy and turn over costs.

Happy to chat...being a local GC takes out a lot of the risk of the biggest variable for most investors (unpredictable rehab costs) and also allows you to consider more options than the average investor, with your rehab costs being significantly lower.

I decided to buy the property from my grandfather using a gift of equity, which allowed me to take over ownership without having to come up with the full down payment and pay for the tax lien and his closing costs.

Whether the seller was open to a buyer commission or not, I wouldn't put an additional cost into any personal purchase.  

2 or 3 bedroom properties would be more profitable considering their cost?

This misunderstanding stemmed from incorrect lease terms indicating washer/dryer access when we did not actually have any washer or dryer set up.

Originally posted by @Mark Whittlesey: I would get a UPS Store (or similar) box instead of a PO Box.It costs more but is much more flexible (is an actual physical address, can receive UPS and FedEx etc.)I had a PO Box for a while and got rid of it for exactly those reasons. 

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

I would guess an older home might be more cost to insure?

I get it...I get emotional with properties and buy into the sunk cost fallacy too.