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. 

The bottom of the price range will typically have the best opportunity for rehab and rent, and as a bonus the level of distress at the bottom of the asking price range will typically turn off those happy couples looking for their turn-key white picket fence dream home, so competition for bids in that range isn't so crazy.

@Sharon Rosendahl Lancaster, Ohio meets your criteria to a tee...35-min outside Columbus.

It does not include leveling of floors, tile or grout.