I don't particularly like FB marketplace, either...I just keep using it because it's worked better for me than the alternatives... 

For you seasoned investors, does it make more sense to go to Home Depot and take advantage of their deals for appliances and such, or are there better alternatives for flooring, tiling, and appliances?

Think of it as an alternative to paying down the loan with a lump sum to make it cash flow neutral.

Alternative strategies: Are there techniques or approaches better suited to markets like this where rents are so low relative to property prices?

So, successful agreements (those that “stand up” when tested in court) have the spouse without the assets receiving a significant lump sum in event of divorce,For smaller sums of money/assets alternatives to prenuptial agreements may serve the purpose best.  

Were you able to find a way to make that income count, or did you pursue alternative strategies to qualify for financing?

Alternatives include Stessa (free) and Buildium (more robust, pricier).For testing, a phased approach is generally best.

If your primary has a net $1M appreciation you’ll only pay $100k cap gains tax - that’s a lower alternative than what you propose.

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Long-term investment should cover income shortfalls and consider alternative markets outside San Francisco or affordable markets like Texas, Ohio, or Arizona.