As an investor, keep away from Fourplex in Boise City because they are over currently inflated.

That's inflating the price and you don't want that headache unless you have millions to develop it.

I think it would be wise also to pick a location where pricing is not as inflated due to everyone wanting to live there, hence returns would be low in those areas and costs really high.So, would I assess my first live in SFH as an investment property, and seek an area that is maybe up in coming, not cost inflated yet, but is still showing signs of potential growth?

Be warned, the money is always made when you buy the property, and in an inflated market it is easier to overpay for property.

While the S&P 500 may average 9-10% before inflation over the long haul, it will be extremely volatile, and I want to avoid having to withdraw as much during market downturns.

If a wholesaler marks up the ARV and marks down the Rehab costs to inflate the Potential Profit too much, or too often, they lose respect points as a good wholesaler.  

You should always take a portion and put in savings for future transactions, and remove your initial investment capital with a three year cost of capital allotment (meaning in three years due to inflation money is worth less so you should add a premium to ensure you still have your working capital) then after that the sky is the limit.

@Jay Hinrichs Yes, the UGB inflates land values within it.  

If so, I would sacrafice some return to get a solid B+/A- deal locked in now at historically low (darn near free when considering inflation) interest rates.  

Proponents of cash buying conveniently ignore the value of cash to artificially inflate their profits but the reality is that paying down a property does not increase cash flow it reduces cash flow if you are realistic about the value of money.