Six figure income is still impressive for any residential SFR..optimally rates improve and so will rates of return with a refinance.

You mentioned W-2 income as part of a way to save on taxes. 

@Apryl Skahill To get your risk-averse spouse on board with real estate investing, start by educating him with beginner-friendly resources that highlight the long-term stability, cash flow potential, and tax benefits of real estate, such as depreciation deductions and offsetting W-2 income.

Rental gives $500 monthly income from $2,000 rent.

She’s currently not paying rent, and while she has some health issues and no stable income, she’s been communicative and open to general talks, with a possible option to vacate through a cash-for-keys arrangement, though this might take around six weeks and some hard work.I plan to rehab the property and eventually rent it out, potentially to a Section 8 tenant.

I'd estimate that there are less than 1,000 legitimate, or "professional" wholesalers, in the United States of America, as defined by individuals who make $100K flipping contracts, and collecting assignment fees, in any form, and who have made that amount of income more than 3 years in a row.

Incomes are having a hard time keeping up.  

Some may require a waiting period of one to two years before leasing is permitted, while others may prohibit rentals entirely as outlined in their bylaws.Always know the property’s potential for annual rental income and ensure the numbers work.

The secondary goal is to increase rental income down the road.

After that's under control, focus on increasing income through additional work at your current job, taking on a side hustle, or finding ways to increase income on your existing rental.At the same time, educate yourself.