The problem (as you have cited) is trying to understand what you need (you don't know what you don't know), where to get it, qualifying its source(s), and the validity and usefulness of all that.Pardon me if I've gone into this too much, but I meet many people with the same concerns that you are voicing and this is offered, as much as possible in direct response to your post.Please feel free to contact me if you have any comments or questions. 

I offered a price based on repair costs and a sale price they could get if they fixed it up (retail). 

The indoor malls that simply offered shopping and a food court are the ones dying off.I've seen some malls be demolished and replaced with high-density single family developments. 

+I've researched something called an FHA Construction loan in terms of financing this project, but it seems that most large banks don't offer that product.

Some insurance companies offer policies specifically designed for owner-occupied multifamily properties, so it’s worth asking about that option.The key is ensuring both your personal residence and the rental unit are adequately covered.

Others are responsible with their budget and can stretch a dollar.If they are excellent renters, I would offer them the option to renew and let them make the choice.

This WAS commented on (thankfully privately) when I stocked Aldi toilet paper.

That experience taught me the importance of leaning on local expertise, even if it feels like an unnecessary expense at first.One strategy I’ve seen work occasionally is offering the tenant a “cash for keys” deal, where you pay them a small amount to vacate voluntarily.

Quote from @Shahid Javaid: Hi all , I am new member here , can any one guide me to discussion abt real state vs stock market investment? 

I've done a local renovation and I wouldn't do a BRRRR in Indy after a few attempted offers.