Objective: I am seeking guidance on how to minimize losses and maximize returns on this investment.

Here’s a great book to help with this: Real Estate by the NumbersAnalyze and assess your objectives and goals.Are you on track to meet your goals?

I have faced the same question as you when deciding which shiny object to follow.

Take the time to explore various house hacking techniques and select the one that best fits your objectives and available resources.Good luck!

Make sure your financial situation is stable, with a strong down payment, an excellent credit score, and a clear grasp of your budget and objectives.

This isn’t necessarily correlated to 1 bed vs 3 bed, but is property specific Objectively speaking, I do believe that 3 beds are much more marketable and have the highest amount of potential attention/tenant pool. 

However, one of our objectives is to reduce the tax burden we face on our W2 income.

A metal object doesn't care if it is 20 degrees with still air or 20 degrees and windy. 

As mentioned above depends on your objective.  

That said, the smaller firms are just that, smaller, with less awards banquets, and all the hoopla that can attract new agents (shiny object!!)