It sounds like you are taking the correct first step of educating yourself.I live, work, and invest in the Lehigh Valley. 

You can as long as the contract does not specifically disallow it,  but it would be unusual for there to be enough meat on the bone in today's market for three levels of investors.

Although we haven't received a preliminary estimate of repairs yet, we were told today that they would fix the property from top to bottom inclusive of roof, side paneling, plumbing, etc.My question is: Should I take the route of the $86,000 in which the essentials are taken care of or should I take the route of the $130,000 in which the property is fully renovated? 

Are you reading books, analyzing properties, or taking other steps to educate yourself? 

@Eli RollinsYou're interested in starting in real estate at a young age, I'm of the opinion that it's better at your age to learn how to talk to girls.And since the thread is well and truly hijacked anyway, and no one reads past the first page of comments, it's a good place to attempt to put together the argument I've been trying to make more cogently.The figures that I quoted above -- that 98% of millionaire households in the USA in the 1980s were run by a married couple or widow/widower, and 95% of millionaire households in the USA today are run by the same -- come from two different research-based books written by business school professor Thomas Stanley, The Millionaire Next Door and Stop Acting Rich...And Start Living Like A Real Millionaire.Stanley died a few years ago and his daughter/research partner is coming out with a new book later this year revisiting the compelling arguments he made about the typical ways that wealth is built in America.

Good article in today’s WSJ predicting a slow down.

For example I see "rent to mortgage comparisons" that don't include pointing out that a 30 yr fixed payment could be higher than comp rent today but what about after 5 years or more of rental inflation? 

I looked at a property earlier today that just went on the market (today), and it's a 3bd, 1 bath, finished basement, and detached 2 car garage.

Keep educating yourself and good luck.

Screening applications is the most important aspect of being a Landlord; screw that up and everything else goes wrong.If you don't know what you're doing, consider hiring a professional the first time or two until you are educated enough to handle it on your own.