Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

James, I think you are underselling your product, most people would of said that property with the toilet that looked like someone dumped a portajon on it would have been rent ready and turnkey with minimal light rehab required.

Another reason why engaging an architect early is helpful is to ensure the layouts are permitted from the perspective of code requirements.

It's a block-by-block play that in my opinion & requires a visit so you can determine where you feel comfortable and also to ensure that you situate yourself where shopping (grocery shopping) is closely available. 

To obtain impact worthy return requires a lot of units.  

Property Requirements: Are there any specific requirements for the property being purchased, such as condition, location, or type?

What are typical down payment requirements?

You can househack with FHA or conventional financing - FHA will require 3.5% down and conventional requires 5% down.

I would always specify that is primarily not "solely" based on the property - Credit and liquid reserves are still a significant part of the underwrite Ofcourse credit and technically with commercial DSCR there are no reserves required but yes as minimum as 3 months :) upto 80% cashout with no seasoning too which is wild . 

If not, I would still recommend going ahead with a professional cleaning company that has experience with mold remediation (make sure they send before and after pictures as well), if you really wanted you could give a small credit to the tenant to make them happy as well but 100% not required.