A lot of people don't have a whole lot of interest in living in constant fixer-uppers, so you have to have the right mentality for that.A variation on it, if you want to live in better homes that aren't great rentals, is to, again, buy homes that are under market because they need some work, do the work, live there 2 years then sell for a profit and keep all of your capital gains.

I am not looking to take equity out against my house, and my other 2 rental properties are already going through a cash out refinance to pay for renovations of a fixer upper that I am buying.

Another thing I am thinking about is getting pictures, and then writing out the items that need work, putting an upper band figure on it, and then using that in my analysis. 

Hopefully, this first investment will launch our journey in real estate.Here are some criteria we have in mind:Not in downtown SacramentoClass C+ or B location, since we will be living in one unit (we just want a safe location)Units with shared walls, not ceilingsSeparately meteredFairly renovated or well-maintained (not a fixer-upper, but if one unit is renovated and the others need some work, we would love the experience of fixing and renovating)Can you think of any other factors we should consider?

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In the cookie cutter markets (cheap markets with active sales and decent appreciation) you can get into a fixer upper for 60k - 90k. 

Also, what type of property (turnkey or fixer-upper) / and your rental strategy (short-term vs. long-term)?

Months of inventory is always relevant because basically it gives you a general idea whether a buyer or seller has the upper hand in negotiations.

I'm going out on a limb here.  

In the upper mid-west if you pay for the heat, then expect to be closer to 60%.