Once the renovation was complete, I helped the client with tenant acquisition and long-term rental management, turning the upgraded property into a sustainable income-generating asset.This project not only increased the property's value and rental income potential but also provided the client with a solid, long-term investment in the real estate market.

More info on DSCR loans in case helpful: DSCR loans won't use your income to underwrite the loan.

Most of the time an appraiser will not take small repairs or replacements into account, like, painting, appliances, etc.

I currently work a full time job, but my wife and I are hoping to diversify our assets through real estate and hopefully have (relatively) passive income for later in life.

If your goal is to eventually solicit from people who are not your friends and are looking for passive income, then you need to consider establishing a syndicate.

Even if it's a nice home, without being able to produce the income your expecting, it's likely going to be a losing investment. 

Get a better job than what you currently have, add a second part-time job, and your income should increase by 50 - 100%.3.

My understanding is that I'd need to have the 20% in cash for closing but could arrange for the seller to put the 20% I need for down payment in an escrow account until after the closing with the Hard money lender.

That can make you look at it from the eyes of a residential buyer and not an investor. 3.6k income with PITI of 3.9k is already under water not accounting for vacancy, repairs, and cap ex.

This means that you will probably need to pay registration and filing fees in at least 2 states if you don’t buy CA property as a CA resident.Be sure to tell your accountant that you may now need to file non-resident income tax returns in each state where you own property as well.