First off, my lift pump is putting out 3.5psi at idle which I am assuming is not quite enough PSI. Am I correct and is there any advantage/disadvantage to relocate it to under the hood?

Thank you

i'd say leave it where it is. its there for a reason. but its not so muhc the idle PSI but WOT PSI. at wide open throttle it should go no less than 1 psi and it should not struggle to recover. mine sits around 3--4 psi at idle and 2 psi under WOT.

Electric pumps should be located as close to the tank as possible, as they "push" better than "Pull". That is why most OEM pumps are now in the tank, as oposed to the older cars with mechanical pumps under the hood.

Thanks Guys