(Fall back idea with almost no development costs.) 

Do NOT fall in love with your tenants. 

They are in Indy and a few other markets (Kansas City MO, Charlotte NC, and Idaho Falls).

If you fall for the bait by most agents, you're paying $2k-$5k in DD.

Kitchen remodel ETA is fall this year, so we need a property by then to move into.

When interest rates start to fall in the next few months it should be really interesting for these large banks.

When we made our winter visit this year, I found that a couple of the TVs had never even been turned on since last year - they were still in guest mode for the times and dates I had programmed last fall.

One of my considerations is to further improve the value by taking a renovation loan, however I'm concerned because of the neighborhood values that investing more money into the home won't net me much profit whether I sell or rent.I feel a little stuck here and I don't want to fall to my limited knowledge, so I'm here reaching out for some guidance.Thank you in advance for any advice or support. 

It sounds like you would be doing the Fannie Mae 5% program that came out in the fall.

Did you ask what about the inspection caused their last deal to fall through and whether they have a copy of the inspection they could provide to you?