Investment Info:Large multi-family (5+ units) buy & hold investment.

Best of luck with your 6-unit deal and future investments!

As for the areas to target, my goal in getting our feet wet as real estate investors--and since we plan to be living in Sac--is to find a property we can live in while renting out one or more units to help cover our housing expenses, which we can then hold and continue to rent out when we move.

I has two GREAT property managers that immediately come to mind, one handling 5 high end high rise condos I owned in Phoenix and the other one handling a 12 unit very lower end apartment building I owned in Arlington, Texas.  

If you're househacking, it will work just fine in most cases, including a multifamily up to four units.

More doors equal more cash flow each month so a 2-4 unit multifamily may be your best option. 

Yes, they are actually selling individual units as well

Negotiate turning the units yourself once a tenant vacates.

5 units+ could be a good place to get started.

The primary issue is that building small unit in a single count is some of the most expensive development.In addition, in most jurisdictions the primary unit will become rent controlled (assuming more than 15 years old).