I think you will probably need 4-5 bedroom to make it work close to break even and you may even need to rent out your bedroom occasionally when the opportunity presents itself. 

It would also be wise to educate yourself on what a good PM does and doesn't do, how they do it, what they charge and why, etc.My book, The DIY Landlord, will be out in December and can teach you how to select or supervise a property manager.

In my experience, they have the fastest turnaround time vs folks out of driving distance from the property.

Renovated with cosmetic updates for immediate rental income, it offers strong cash flow while preparing for more extensive repairs and the addition of an ADU.

Since we are out of state, we have to lean on a lot of information from y'all!

We’ve always had the intention of cash out refinancing into another property once the time was right.  

Very simple to do.1) In the hole you, spray some suspend sc insecticide inside the hole. https://www.amazon.com/Suspend-Insecticide-USA-Supply-Eradic...2) Get a beekeeper suit, just in casehttps://www.amazon.com/Professional-Ventilated-Sheepskin-Bee...3) cut open the area.4) Spray inside the entire wall the suspend SC5) Dry out and close up the wall.If this cost you $200 and some time, I'd be amazed. 

However, there are plenty of charming single story one bedroom house ideas out there.

If you are renovating your rentals you need to let the current insurance company know what is going on, if they send an inspector out there within the time you could get kicked from the policy too, and not easy to get back on one.

Cash is king.