The inspection stated not all was level, but fully functional.Main problems:- Low soil clearance or *no* clearance crawlspace - under the entryway and under the bathroom could not be accessed at all unless crawlspace is dug out.

I would value the opportunity to share thoughts and processes (and actual numbers, not only high-level concepts!) 

I don't even know how anyone is answering this question since it's highly dependent on your experience level, how much money you have (cash and access), what your financing vehicle is, where you have boots on the ground or contacts already made, and so much more.

It all depends on the level of involvement you want, versus cost of outsourcing those tasks to a property manager. 

In particular the stress level of managing the property.

BOTH homes have one main level and one basement level.Why would I try to compare a 3 bed 2 bath and try to comp it against a 5 bed 3 bath?

The next level up in there is Axiom followed by Ascension. 

The lake level has dried up quite a bit BUT the property is still waterfront!

Do you need to have the cashflow now, or are you planning on growing the cashflow to some level in the future, etc.

You are learning several skill sets to include parts of a renovation, maybe management of a renovation from a higher level, and you are meeting contractors and realizing time lines for renovations.