@Tyler Kowalczik- thanks for the post ....1) get pre approved for a nypotehtical  scenario  so that  you  can make sure you can get  financing and also  so you  can  become familar with the process  2)  you will need a  down payment of  15% or more   3) once you know what a  possible  realistic  loan payment  looks like - do your  reserach on  what  rental incomes  are  realistic  and  this should help with your  decsion making .....the prices are  high in LV ...Port angeles  or  P townsend  might be  better ......consider  Kitsap county  ( although its  been  increasing in value )

Ask for one year history of the rent payments from her family's rental property.

Was the house paid off or did you take over payments? 

.- Current owner continues making monthly payments, we pay him after he shows he paid the mortgage on time.

Downpayment, closing costs, holding costs (loan payment, utilities, insurance), money to front the contractor to get started (you get back after the rehab is done). 

I released the co-signer after first year of timely payments.

Connecting with a lender that can run numbers for projected mortgage payment vs  market rents in relation to the area you're looking into would be a good first step! 

When you are going to be living in one of the units you can use a low money down loan with a down payment of 3.5-5% down and live in the building for one year and then if you’ve saved enough for another down payment you can then put another 3.5-5% down on the next building and live there for a year and keep doing this year after year and build up a nice portfolio this way.

It depends on what your starting reserves are, but if you have enough for a down payment, I would look into DSCR loans for financing, as you can qualify based on the property's cash flow as opposed to your own personal income. 

If househacking is possible I would rather buy my primary house using a low down payment for first-home buyers than invest in other properties in Sacramento, Modesto, Fresno, etc.