I would spend time building your list of WHO (agent, mentor, contractor/handyman), then WHAT (house type, tenant base, work needed), then WHERE (location).

LLC offers better legal protection.3) Setting up in states that allow your identity to be hid is also overblown.

Sometimes people get paid and if they can pay their rent immediately they will but if they can't they may be tempted to spend it elsewhere. 

This can help protect you from discrimination claims.

However, if you’re not ready to jump in yet, you could spend the next couple of years building your savings and learning more about real estate to feel more confident when the time comes.

I mean, obvious right, people can only spend what they have. 

Based on the questions you are asking I think you need to spend more time listening to podcasts like Bigger Pockets and Bigger Pockets Rookie.

I've printed out a Notice to Quit and will post it on their door for legal protection.

Let’s hope that guaranteed protection comes through.

Focus on tax-saving strategies such as cost segregation studies and bonus depreciation to accelerate deductions.By qualifying as a Real Estate Professional (spending 750+ hours annually and materially participating), you can offset your wife’s S-Corp income with real estate losses, reducing your tax liability.