Then set aside the equity to invest outside of a primary home.

Then talk to a qualified, professional QI like @Dave Foster.

Then I refinance it with a long-term DSCR loan.

My brother had access to the other $160K but ultimately purchased a 4-plex two months later using his own money instead.Currently, its written that if my brother doesn't use the funds then he gets 160k value from the estate extra, as I used my half already but then my dad suggested a 2% annual appreciation on that amount seems fair on the 160k for him, and now he believes it should match his home’s appreciation, which is roughly 5% per year.

Then make foundation/roof repairs one at a time.

we can do it not rented but rate will be significantly higher. easier and more cost effective to rent it. unless the bridge money needs to be paid back asap or you need the funds back to buy more, then a cost analysis needs to be done. personally id get it rented at market rent or a touch below if time is a factor. 

When I say "ask the questions" i mean literally ask the prospective tenant, you will be able to get a feel for them if they are witholding or being decietful, Then go with your gut feeling.

It would be a shame to convert it, and then down the road they tell you that you have to change it back.  

If you haven't fully accounted for all expenses, then your return may be closer to 5%.

Quote from @Brendan Jones: When it's a home you intend to live in, I lean towards focusing on what you want, then making it work as best you can as a short-term rental.