I think the answer is obvious, but I'd be curious to hear from first timers who have tried either approach. My anxiety about a property needing major work is that I'd get out over my skis and possibly get hung up with delays (construction, permits, etc). I just met a contractor in my area finishing a gut rehab on his own recently purchased home. I could turn to him for a big job, but I guess I'm more comfortable with the idea of Home Depot coming in and redoing kitchens and baths and redoing floors. Financial reserves are not an issue but if I make a budget I'd want to stick to it.
I overspent on a property that was rent ready. Surprises add up. I highly recommend not going too far out there if you don't have a team in place... although it would be a great learning experience you could lose a lot of cash.
I would recommend whatever maximizes the income of the property without over doing it. for example if the property is extremely outdated and far sub par to other homes in the area and a full gut is whats needed for you to get rent at market value (and you have the funds for it) then sure full remodel makes sense. But if light work around the property would bring it current then that might be your best course of action. Especially for a rental property some people tend to overspend in certain parts that aren't really necessary