You can be nice and cordial, but you will lose big time if you put your heart in to this venture as your tenants will tear you up emotionally and financially.

I'm assuming they are tearing down and rebuilding.

I purchased the paint for another job had $150 in the 2 5gallon buckets of behr ultra, $46 in ceiling paint, 2 shower valves at $55 each, drywall at $64, insulation $60, plumbing fittings at $23, tile was $100, $60 in door knobs, I payed my employees for cleaning all 4 units out, painting 1 apartment and half other, tearing out paneling and insulation, re install new insulation and hang and finish drywall, install 2 shutoff valves and install scald proof valve.

Most inspectors won't do an inspection without a 3rd party to protect them from the liability questions above.Also note that most standards say that home inspections are non-invasive so we aren't moving furniture, or tearing off dry-wall.  

A couple days ago, I had an agent call and tell me that he just sold 3 houses (all tear-downs, one already demolished) a few lots east of my property.  

At $340k, it's not going to work and I wouldn't speculate about escalating rents or appreciation - not guaranteed, period...Nashville is very hot right now and the only way someone will make money on this duplex is if they tear it down and rebuild to flip.To give you another comparison, I just put in an offer for a 10 unit in Dickson for $300k - only 45 min's from Nashville.

In my experience 2bd renters are typically older and don't have kids who might add extra wear and tear on a property. 

Somebody probably got paid to tear it down.

You need to have a good attorney and pray to God they don't tear it to pieces before they leave! 

If you did anything right now, I would probably tear off the rock face and just put sheetrock all around it with a smaller mantel.