Best Areas in Northern CA for Multi-Families and Vacation Rentals

[Wendy Forbes]

I'm going to be exploring northern California over the next few weeks with an eye toward finding a small multi-family buy and hold. My idea would be to use at least one of the apartments as a vacation rental. What do I need to look out for with short term/vacation rental regulations in CA? I had been thinking I would look in the Sacramento area, but I'm open to other suggestions. Where would I be most likely to find a cash flowing property that would also have a good vacation or short-term rental market? I'd like it to be in a somewhat urban area as I live in very rural New England and would want to use the rental myself on occasion for a change of scene!