I have spent many hours researching this and I still don't feel 100% comfortable making large financial decisions based on my understanding of the tax implications.

If you feel more comfortable sending a private message, that's totally fine too.

Plus I'm very bias toward apartments so if I were in your shoes I would look into passive investments through a syndication.

My contractor can handle the work if he has the plans, he is just not comfortable dealing with the city on permits (I think because of a little language barrier).

Just what I would do in your shoes. 

Help them navigate ARV and repair costs (if you're comfortable), etc. 

I like a dark brown that kind of looks like dirt, if you have the tile to pull it off, because after a year of greasy, dirty feet and shoes it will be the color of dirt even if you seal it. 

Or if they don't, you can at least make them less comfortable.

Its possible for you to buy cheaper flooring but you will find that some of the thinner options will not be as comfortable underfoot. 

I would feel very comfortable if I had $7,500 reserved owning a duplex incase I ran into a major maintenance issue or larger unit turn.