With $1mil could probably generate $4-5K net per month comfortably with property management or minimal work self-managing. 

I've also had one potential tenant tell me that "an income requirement of 3x the monthly rent basically disqualifies single-income families".

Previously loan officers have not been very optimistic, probably due to her income. 

If not, factor minimum 15% for management.Also, consider that you will pay taxes on all the income (after expenses).As others mentioned, research the competition in your area to learn the demand/restrictions.Depending on these answers, you may be better off doing this closer to home. 

If you want to use your income to underwrite the loan then you will have a longer seasoning / waiting period as those loans have different rules compared to loans underwritten by the rents / DSCR loans. 

(You act as the bank)Charitable giving to offset gainsTransfer the home into a trust (Like a CRT for example) that will avoid capital gains tax and you can have pay you a set income stream until your death and the remaining funds would go to charity.None of this is or possibly could be advice, I don't have enough info to fully know what is "best" but these are some ideas to think about!

I live 100% from the income from our holdings. 

However you could also construct a bond/stock portfolio where it generates 5% or more in today's interest rate.

HELOCS do exist for rental properties but you are usually capped at 65-70ltv and these will most likely require a full underwrite that takes into consideration taxes, income, dti and all the normal quasi-associated red tape.

Neither of these require income verification and much easier to navigate versus conventional.