My husband and I are thinking whether we should fix up their old house to rent it out (the house is free and clear estimated around +$600k with market rents in the neighborhood of $2500/month), but it needs work (cracked walls, replace carpet, remodel kitchen/bathrooms). 

We just landed a 5 unit building for $110K, 4 of those units have been remodeled. a 3 BR unit needs small improvements.

I used to work for a remodeling company and we had done 1 house many years ago that had lead paint and needed to be scraped.

My question is: what type of remodel will best fit this type of property?

You will need to hire a remediation company and during the remodel you will remove everything that is contaminated.

A turnkey provider and I were having a conversation about this last night but for a remodeled single family 2 bedroom home even in an area like hilltop in columbus they are getting $695 a month in rent. 

Another thing you can do is once you purchase you can let them know that you will be remodeling the unit when their lease is up and if they want to move sooner you will provide them with some cash to move quicker.

I would like to avoid buying the house outright before flipping it, so here's my creative flip that I'm looking for input on.What I'm thinking of proposing to the current owner is that he retain possession of the house, and we remodel the house and get it ready to sell.

Currently have 3 vacancies and a duplex to be fully remodeled, which I will start next month.

I knew nothing but I got to the point that I now have serious remodeling skills.