And as @Basit Siddiqi pointed out, you will likely need to file an Ohio nonresident income tax return to pay tax on the income you earned from the property in Ohio.Regarding whether you want to have an attorney look at the lease, that depends on your risk tolerance, the type of property, the type of tenants, etc. 

But as always, run your numbers and see what your market is like and what you would be able to tolerate.  

Hard to say what would work.Each individual has a different risk tolerance, amount of being passive versus active, needs cash flow today versus more equity growth on the back end, certain time horizon to stay in the investment,etc.Only the individual can decide what is most important and the best fit through research and self discovery.For me as a syndicator and sponsor I like deals where there is big equity gain on the back end for my investors and myself.

I understand it may be personal risk tolerance preferences, but if there is a general consensus or rule of thumb that would help.

Her having a nice new kitchen (if she cooks at all) will make everything much more tolerable; for you both.Also, a 203k will require you to have bids from licensed contractors, and they will have to do the work and the rehab funds they escrow will be distributed to them as they prove completion of specific jobs. 

I will support my family on the $40k/yr and the rest will go into paying off my rental properties which some of you will disagree with but I have done the numbers and evaluated my own risk tolerances with loans for rentals and decided for my family paying off the ones we have is the best course of action.SO..

In the end it is all about your tolerance.

If you are doing real estate full time, become an "expert" in your niche, establish a solid investment criteria that is aligned with your beliefs, investment goals and risk tolerance and start growing from there.

Whether your tolerance for risk allows you to scale to larger purchases, or you'd rather mitigate some of that risk and buy smaller properties is totally up to you, your goals and your comfort level.

You need to know three things:1) What the market rent is2) What amenities the average unit has at that average rent3) What is your tolerance for an empty unitIf your rent is average and they just want a discount stay the course you may get a call back once they've shopped around.