In addition to Pennsylvania, my thoughts are exploring in the neighboring states—New Jersey, Maryland and Delaware.

We were recently exploring the duplex option written in a comment above and honestly didn't see any good deals in St Pete/ Tampa.

Here's some guidanceon finding your first deal:- Define Your Criteria- Explore Financing Options: Withyour budget for a down payment, you have several financing options to explore.Conventional loans typically require a 20-25% down payment, while FHA loans forowner-occupied multifamily properties may allow for a lower down payment,around 3.5%.

It is easy to underestimate your rehab budget and your timeline leading to more holding costs.Or you could explore partnering with someone who has experience in the area and capital to also invest. 

If it is land locked have you explored what you would need to do to legally get access to the land?

I've explored this option the least and don't fully understand the benefits of a 1031 exchange compared to our other options.4- do nothing, continue to let the property cash flow.

I wanted to explore the possibility of  building some housing units on them.

But our timeframe is a year from now, so we're still figuring everything out.I work in film/tv post-production and while I may be able to do the work from home thing with that job (at least to some degree), I will need to replace much of my income with this new business.Thanks again- I'm sure I will have more questions as I do some more exploring.... 

As I explore different property types and investment strategies, how did you determine which path to focus on initially?

Investing in real estate in Cleveland, particularly with a budget of $40,000, is an option worth exploring.