I do not think that is smart because if they can not clearly define what is or is not a good deal for them..

The cheapest areas I've seen just browsing around seem to be in Sacramento, but not sure if that's the best choice or not since it's rather far.

In the long run a cash out is normally the better choice and in your situation it could potentially lower your current payment even though you are taking money out.

The type of list is an individual choice and depends on various parameters such as your geographic market, the type of deals you're aiming for, your calling capacity, marketing budget, etc.

You are welcome to chat with me and we can locate some choices.

Additionally, although the PM may not be technically ripping you off or doing anything illegal, you can bet they are making choices that are not in your best interest. 

You need to use a service like Smart Move to check their credit, employment and eviction history.

We're not sure what the best course of action is.I know we're in an enviable position with the high W2 income and low debt, and so I really want to spend the next 5 years making smart decisions. 

If they are marginal, Hard money may be the better choice

I was born and raised here too and chose to stick to my roots and work/invest here as well, good choice!