I checked the lease created through Zillow that does not show up any option for reletting but what I am aware (done it few times when one of my other property was managed by a property manager) is tenant could pay reletting fees (typically one month rental) that allows property to be re-listed.

Check out NARPM website

Check out this on their site, if you think 50th percentile pricing is too high, you may want to try pricing at 25% and see how that looks.  

Check local rental listings to get a realistic sense of rental rates and vacancy rates.

I'm looking to start this with between $75k-$100k (inlcuding $55k down) to account for maintenance ect. 

I would first make sure to run a detail search on property. make sure you're talking to who the owner actually is. second, I check and see how much equity the homeowner has, and if there are any lien on the property. after you gather all that, then you can have an investor friendly agent help you with drafting a contract. so, you can have a contract in hand but also a Lien on the title, to make sure you're getting paid. 

So, I thought I should sell, take the profits and put into high interest account, rent a room for myself for about $1100 per month with all utilities included and that way I can save additional funds for a year.

If they can't figure out their issues, don't renew and find new renters.If one of them wants to rent alone, check their financials to confirm they can afford the rent alone.

I think that is something that needs to be taken into account when purchasing rental property.  

KW Specialty6.Delos InsuranceAnd a few other smaller onesI recommended my Farmers contact mainly because she is also a broker and can check for other coverage.