Disaster Strikes...Help with a rental property

[Paul Enzinger]

Hello,

My wife and I are small-time RE investors. We acquired this property in 2018 (2-family) and it has been pretty smooth sailing since then. This past hurricane (Ida) was a whopper and flooded the first floor, destroying the 2 kitchens. At this point, our decision has been to issue a Non-renewal of lease notice with the idea to renovate and flip it. HE insurance will not cover floods and since we are not in a flood zone (on a hill) we did not add flood insurance, but it will cover some things (overflow from our backed-up sump pumps and a roof).

We are hesitant to make repairs fully to the building because we want new buyers to have new things, not once-used (current tenants). One of the tenants has issued us a low-ball offer for the house, which we promptly rejected but now we are stuck in a kind of limbo. Thoughts? Opinions? Anything would be helpful