Is it worth diving into a full bathroom/kitchen gut (unpermitted/handyman not of my choice) possibly revealing more issues or just paint, new cabinet pulls, switches/outlets, lights, etc?

Thanks to plenty of smart people here on BiggerPockets, I have learned that it may be possible to offset a portion of this unexpected higher W-2 income with the purchase and "active management" of a STR. 

5 bed 3 bath house ) For unexpected changes, we couldn't afford mortgage, we rented as Short term rental. 

Good for active investors who enjoy project management and renovations.Cons: Higher risk due to market fluctuations and unexpected renovation costs.

Even if the first deal "costs" them money, it is the cost of education and they are better suited for the next.B) Of the handful of turnkey providers whose websites I have been to and deals I have looked out, let's just say they are certainly painting a VERY rosy picture.  

Financial risks, such as unexpected repairs or vacancies, can also impact your cash flow.

Same thing might happen with the vacancy if you have 2 months for lower end instead of 1 month for better area.I would use higher percentage for repairs and vacancy in lower end area when you compare CF for the 2 properties.Even in higher end area this year I had 2 evictions and one of them with 6 month vacancy and over 12k in damages, bad things can happen in both areas, the important thing is to keep cash reserves so you can get over unexpected expenses.

Any table with outlet nearby can be called a work space.

Always, always, always have a reserve because there will always, always, always be unexpected costs.HOW MUCH TO RESERVE?

As someone who has a tendency to spend excessively and live paycheck to paycheck, the lockdown measures implemented during the pandemic unexpectedly helped me stabilize my financial situation.