I'll probably be here for another year or two, but I'll keep the property when I do find my next step, and aim for Mid Term rental, to get the higher income. 

With the realization that I could but and hold with some success in a military area, I decided that investing in real estate would be a good secondary source of income.

Hey Latonya, accepting out of state vouchers can increase your tenant pool and potentially increase your rental income, but it also introduces complexities like verifying voucher validity with distant agencies, dealing with unfamiliar local resources for the tenant and navigating potentially different eviction procedures in another state.

My guess is, with a maximally frugal approach, mid 5 to low 6 figures to create, and high 4 to low 5 figures annually to maintain.

The whole appeal in REI was to maybe create a small business on the side with my spouse as a way to: eventually secure supplemental income, start building equity in RE and maybe creating a small business together in RE that would help us obtain financial freedom after hearing how risky things can be, I’m trying to learn: what are other RE investors doing to make money despite the risks around home repairs, vacancy, additional expenses (i.e property managers), etc.

Based on what you're describing, I think your going-in criteria is definitely something that is strong *however* your goals may not match what current market reality is.When you say $3200/month payment - do you mean $3200/month before or after accounting for potential future rental income from your tenants in the other units? 

For instance if he says $20,000 in repairs I’m not that worried and will offer close to where I figured I could offer based on income and expenses.

Those that respond “$0” or something ridiculous, you can request income documentation from them to justify.Don’t be afraid to share with them how much your property taxes & Insurance increased and that YOU cannot afford to absorb them.ALWAYS get an increase or something of value annually or tenants will start thinking they should never have an increase, making future increases that much more difficult to negotiate.

SoCal CAP rates do seem to be 5% from the redfin descriptions I read on some of them.I'd much rather buy a 1 million dollar SFH in north county than a 1 million dollar 4 unit in a low income neighborhood. 

Depending on the situation you may find a quad as well that would effectively let you use 75% of the rental income from the 3 units you don't occupy.