I would recommend the renter paying you the full market rent each month and then you can pay him/her in a separate transaction for any work that they do. 

If this was me, I would be at the property, getting in touch with local Facebook groups and generating bids to get handymen/local contractors taking up urgent jobs that are preventing units from being rented (even at a lower premium) that are ready to help nurse the deal.

Explore options like renting the property as-is at a lower rate, investing in repairs for higher rent and better tenants, or selling if repairs are extensive and tenant hassles outweigh potential returns.

What concerns me is that net profit turns much lower than I expect and I have to pay way more out of pocket for so many years.

This lowers refinance options.

What you bought Pre-covid with a low interest rate and much lower value at the time. 

As is normally the case, the construction period rate is adjustable and tied to the fed rate with a lower rate once the loan resets as a permanent loan.

The idea is that the appreciation will far outstrip the relatively modest cash flows you'd be able to get in lower priced areas. 

., if they're the selling agent or own the construction company, etc.)If all estimates go to plan, then the 55% net profit should provide an 18% annualized ROI for the $1M, but likely lower.

I'll echo that most of these Midwest markets that skew toward lower purchase prices are similar.Areas can be hit-or-miss and you need to really understand the risks and potential rewards before making the plunge.