Our standard email with the bid states, please contact us to discuss & redline to your budget.The only thing we will require are health & safety repairs, to avoid a lawsuit.

There are a lot of different ways to deploy that $300K (or keep a larger chunk in cash for safety). 

Same as you wouldn't only invest in one stock (or the stock market), diversifying allows you a bit of a safety net in case one goes down.With real estate a lot of people focus on cash flow, but remember tenants are paying down your mortgage for you and helping you build equity and over time (eg 5-10 years) your house will also appreciate in value.

To me, safety is relative.

My concern is whether the city could deny permits for these modifications, such as removing walls or converting a garage, or if they are mainly just concerned with safety and habitability.

If so, then find out what you have to do to have him removed as domestic violence allows the tenant to move without 30 days' notice (to ensure her safety). 

I've always believed in the saying that "there is nothing wrong with any deal, as long as the price is right" lol.This might sound cliche but all of Cleveland can cashflow if you buy cheap enough and if you buy with cash.And cashflow it can very well.Just like all of Ohio.You make money when you buy and not when you sell.So make sure to buy dirt cheap.Buying cheap also "acts" as a margin of safety for any mishaps that happen during rehab or issues like the OP had with the first property manager.I see many folks nowadays buying off the MLS and overpaying, spending too much on rehab and then getting dimed to death by property management.While I'm sitting on the sidelines as a turnkey provider watching it all un-fold and thinking how they just could have bought my "overpriced" turnkey property and would have been into the deal for at least 30% cheaper...It's a shame but it's what the people want, so many give the people what they want.Thanks 

When you see what people do with old space heaters, guards and safety removed, plugging in several in one overloaded extension cors,... you can see where the concern is coming from.

I have some relatives that will never leave the safety net of a job  or even invest in RE due to the not thinking outside of the box (or cubicle).

But you want to build a financial safety net for them.  2.