A unique neighborhood in that many of the residential dwellings have been built into the catacombs that line the hillside, Sacromonte is accessed by one street alone: the Camino del Sacromonte. Believe it or not, pretty much everything on this street is tourist-centered, despite the air of authenticity, so don't think you'll be seeing impromptu artistic expression (as may have been the case decades ago). We'd say to start with the Center for the Interpretation of Sacromonte, which gives insight into the community and also provides flamenco shows. Casa Juanillo is another popular flamenco spot, although you won't be at a loss in finding one, whether you book with your hotel in advance or wander in late in the evening.
Put at least a night of your itinerary toward exploring Sacromonte, possibly combining it with other superlative views of the Alhambra from the adjacent Albaycin neighborhood.
Note:At the end of the main road, you'll encounter the Abbey of Sacromonte, a large complex created in the 17th century. Tours run daily around lunch and before dinner and the entrance fee is nominal.