These can do quite well in the Denver area if well furnished and marketed appropriately. 

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?

Check out local meetups as well.  

Well well well.....Is there not anything in this God 'forsakin' land that is not a scam?

There are a ton of knowledgeable folks on here as well as an abundance of information.  

Might me some tax advantages to this as well.

Your best bet is to build relationships well before asking about investing.

I previously served as counsel at a Hospitality REIT where management was separate but the management was a viable business that managed REIT owned as well as 3rd party hotels.

I highly recommend a well-qualified REALTOR who works with investors and knows how to help you best.7.

Does it integrate well with other platforms?