Fractional investing options include real estate crowdfunding platforms like Arrived and Ark7, or real estate syndications for potentially higher returns.

What would be the best and smoothest way to transition the tenants to a different payment option?

We plan to utilize hard money but I am interested in opinions for other options.

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. 

You may find them excited about either option.

If you proceed with optional Repairs/upgrades you will likely bust budget (hopefully not as bad as we did), but should have years of trouble free service.  

We give our clients a few different good options and lately our client's have been independently going with Lease Killers every time.

For those of us who are chat junkies, IRC is a nice option.

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

Best options would be either 1-Buy a cheaper older home or 2- put a down payment so that the mortgages is more feasible to rent out.