The combat I found outside the western gate was about 5 skeletons and a magic user.
At the old house, right? Well, between the west gate and that house should have been a smaller encounter. That house encounter is also appropriate for a level 3 player. Basically that entire western area is the best place to be until you reach level 5 or so.
Right now the rogue is a little bit hampered because Sneak and Guerrilla are broken in this build.