Renovation...you control this:  how much you do, what grade of materials, what gets done now versus later.So how long does this take:  an hour after walking it. 

Section 8 usually is good for C grade areas.

If you're going to look into Cleveland, you'll want to read The Ultimate Guide to Grading Cleveland Neighborhoods.While it's true you can make a ton of money in Cleveland (I've done it) you can also lose your shirt (I've done that too, literally) Cleveland can be a mine field, so make sure you understand what's what before you buy a cheap house off of Zillow or something like that.

A lot goes into value of land, utilities, electric, flood plane, existing grading, zoning, location.

Every millionaire that I know never has direct MF (even as GP) but they invest in multiple A+++ grade apartment syndication.

Google what it's like to be a real estate investor in Cleveland and check out free resources provided by Cleveland investors such as The Ultimate Guide to Grading Cleveland Neighborhoods.

For instance, what grade is the house, and what grade is the neighborhood?

Good luck @Dan Heuschele Yes thankfully most are in decent shape but yes that can change at anytime...for water lines crawl space makes it easier and for properties with slab on grade I usually cap the lines underneath the slab and route through the ceiling instead so that when there is a leak it is a cheap fix vs having to deal with slab leaks :)

@Noelle Stecher to me, Option #1 is the way to go--especially for a beginner.Here are the reasons: First, location and grade of neighborhood are critical (in more ways than one). 

What grade neighborhood are your investment property that were rented out during winter?