Buying first home to live in- Should we make sure it cash flows?

[Michael Mohan]

Good morning Bigger Pockets. I am new to the site and podcast. I have listened to about 30 or so Bigger Pockets podcasts and read investing books such as The Millionaire Real Estate Investor and Hold over the past two month. My goal is to read a real estate book a month. 

So, my wife and I are looking to buy our first home, in the Las Vegas market, specifically 89143, 89131, 89084 or less preferred zip codes of 89033 and 89149. Our housing criteria is below. We are able to find single family homes at what we believe are slightly under market value, but none of our offers have been accepted. The houses have sold for about 3-5% over our offers. 

Two Questions:

1. Any advice for someone looking for a single family home to live in? Things I should be considering that I am not.

2. Should we be looking for a property that cash flows? I have run, my understanding of, the numbers and have not found a single family house matching our criteria that would cash flow. If so, I feel like we are buying strictly for appreciation and obviously to not pay rent anymore. As a newbie am I taking the wrong approach?

Criteria

Single family home
Great/safe Location (zip codes above)
Below market value (10-20%)--not sure if this is attainable/realistic. We have not been able to locate such properties. We have lowered our standards to 5-10% under market value
Price (max 350K including reno costs)
Price on the lower half of the neighborhood ("Chevy in a Cadillac neighborhood" is the goal)
Max 4 bedroom 3 bath.
No more than 3,000 sq ft.
Open floor concept or potential for one (potential for a large kitchen/large kitchen)
2 car garage
Backyard

No major renovations needed (looking for minor renovations such as new flooring, paint, new countertops, poor landscaping, )

We are interested in Centennial Hills, Northwest area. Maybe NLV--Aliante region. 

Thank you in advance.

Michael