Where specifically in this area you are looking to invest? 

Where are you located?

The usual way, but not the right way, to try to buy a rental is by finding a property on the MLS, where agents congregate, make an offer and then try to get financing to buy the property.

You will have a leg up on the competition where it's a stand-alone. 

No matter where you settle upon, your idea to build really comes down to your goals.

I learned about them from a Rent to Retirement podcast where they interviewed a former W2 FT sales guy in tech (that's me today...) turn real estate investor.

A good Realtor that knows investing should be able to connect you with a great PM in the area where you plan to buy.

The last part is where results happen.

However, prices on $1M homes haven't really appreciated all that much and we are looking to move to something much smaller near where our kids go to school. 

@Dhruv Patel I believe you are getting ahead of yourself....Where in the US are you all-in (land acquisition, soft costs, hard construction) on new construction multi-family for $100/ft.