Examine the property's state, rental revenue, and cash flow while taking location, condition, rental prices, and future appreciation potential into account.Assist your real estate agent in negotiating the conditions of the acquisition and submitting an offer.

You likely have to live there longer and/or plan to use it as a rental property (assuming the revenue is high enough) because you're starting at zero equity.  

Pay attention to places that have access to amenities, top-notch schools, and job hubs.Value-Added Opportunities: Look for homes that might benefit from upgrades or renovations to raise the value and rental revenue.

One thing that helped me as well was deciding what I wanted to take "off my plate" first and matching that with revenue goals for my company.

Appreciation is a longer term wealth building strategy and over time in good markets rents will also go up increasing revenue.

We would like to keep the operating revenue and expenses separate from our personal stuff but want to file them along with our personal tax returns.

In order to create rental revenue that can cover living expenses and provide positive cash flow, it entails buying a single-family home and renting out the individual rooms.

You will also provide your "client" with a statement that shows the rental income the property received along with the associated expenses you paid before sweeping the money over.The Operating account of the Mgmt fee now has Property Management Revenue. 

...and how much more revenue are you usually seeing for a MTR compared to a LTR? 

There are provisions for owner-occupied and non-owner occupied STRs in Sacramento : https://www.cityofsacramento.gov/finance/revenue/short-term-...The latter requires a conditional use permit but I don't see any info about that in the website.