Display Enemy Different on Client

BeginPlay is always called on the client after replication so it is the best place to put it.
As for the object, you can really do it anywhere but I would recommend doing it on the Pawn itself. You would also need to do a HasLocalNetOwner check to ensure it is another client.

So it would look something like this:

void ASomePawn::BeginPlay()
{
    if (!HasLocalNetOwner() /* not owned by this client */)
    {
        // Show red glow.
    }
}

If your game is more than a free-for-all, you may want to look into using a team system to implement this behaviour instead of HasLocalNetOwner. Unreal has one built in called Team Attitudes (but it’s honestly not that great and I would recommend making your own).