I would delay the closing until I had an estimate for the repair as these can get expensive.

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookConsider checking out HUD homes for small multi's owner occupied gets first crack.

So i got an estimate and presented it to the tenants.

My thought is that working as a home inspector could be a good way to become proficient in understanding property values in this region and also building a better understanding of repair estimates.  

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookYou might consider Niche or Specialized Housing like student housing.

Remove the wall, relocate the electric (he can see that)and give you  priceJust get a few estimates and select your best contractor and best price.

Our service includes MLS comps, construction estimates, fixed expenses and all info that you need to determine your maximum offer. 

I am trying to estimate the cost and see if this rehab would be worth it.

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookYou might consider Niche or Specialized Housing like student housing.

Dont forget to factor your rehab when putting together an offer. if you're serious, get a contractor to give you an estimate on the rehab so you can better understand what its going to take to bring this property up to your standards. finding a distressed property and using the 203k is probably your best bet to make these rules work in your favor.