What should I do after I sell my house?

[Matthew Jones]

I bought my house a little over 4 years ago, and have been remodeling it while also living in it. I am ready to sell it now and should net about $35,000 after the sale and other expenses (closing, real estate commission, paying off a.c. unit, etc). I want to use that money for a downpayment on a rental property and another house for me to live in. 

The idea would be to sell my house, put 3.5% down on another house, use the cash from the sale of my house to put 20% down on a move-in ready rental property. 

For the house I would be living in, I'm thinking about buying a 3 to 4 bedroom house in a trendy neighborhood and house hacking by renting out rooms to cover my mortgage. Ideally, I would find a house where the rent from the rooms would produce positive cash flow after making my mortgage payment. I would also be using the cash flow from the rental to pay other expenses I have. The houses I'm looking at living in are older houses that have been completely renovated. I do not want live in another remodel project again if I don't have to. 

Does anyone have experience with this? Any glaring errors in my plan that I might be blind to? Any advice would be greatly appreciated. I'm new to all of this and have been struggling with my options.