I just want some outside eyes to help me understand if this deal is what I should expect to find as I build my portfolio.I plan to buy and hold long term.

Getting pre-approved, networking with local investors and agents, and understanding LA’s market challenges will set you up for success.Good luck!

In either case, the longer a property remains on the market, the more motivated the seller often becomes to offload it.Savvy buyers understand this and often target properties that have been listed for three months or more.

From my understanding, I need a Proof of Funds in order to get under contract. 

But what is really important is that you understand the terms of the loan, including the length of time and when you can expect to get the money back, how it is secured, and the process of getting it back if things don't go as planned with the investment.

You need to understand that we are only obligated to whats in contract.

but careful planning and documentation are essential""...making sure that your wife understands what she needs to do to document her hours and activities."

Quote from @Max Martynenko: Thanks for your understanding and sense of humor!

You understand some of the basic concepts, but also have some giant holes in your plan.

It is my understanding that gifting a property does nothing to step up basis as the capital gains would follow the gift.