While I’m open to both turn-key and fixer-upper properties, my preference leans slightly toward value-add opportunities where I can improve the property and increase equity or cash flow.That said, I’m also happy to consider turn-key options that provide immediate cash flow if they fit within my investment strategy.

If there's enough duplexes that it's likely you find one you like in a reasonable amount of time (less than a year), then start looking at them in your preferred area.

We're willing to live almost anywhere in the greater Sacramento area based on what we can afford, provided of course that the property is in a decent neighborhood that has a good chance of attracting responsible tenants.As for budget, I believe we could get a conventional loan for properties up to $600k, but my strong preference is to find a distressed property (or seller!)

Most institutional DSCR lenders prefer one lease per property/unit, however, I've seen programs allowing rent by room strategies.

I'd prefer a small business.

Do have an idea of your preferred acquisition price and how much rehab might be required? 

Would the person who takes on more labor to repair the property have greater preferred equity or is this usually treated differently?

Personally, if I can hold with a little bit of cash flow but good upside appreciation over time I’d prefer to hold.

Quote from @Keith Groshans: My preferred investment in my SDIRA is mortgage notes.

.), I'd recommend that the residential units fully cash flow the loan as my experience is that mixed use properties are tougher to finance as most lenders tend to prefer one or the other and something in the middle gets more difficult.For example, and granted I don't know anything about the area/neighborhood, I would expect this property (https://www.realtor.com/realestateandhomes-detail/111-NW-Har...) to be easier to finance than the mixed-use property you mentioned.