But, it will be more challenging long distance than if I still lived full-time in that area.You are leaps and bounds ahead of the rest with having grown up here :) As long as you are up for the challenge, it's totally doable!

But it is still doable. 

If you change their $1200 to $1500-1600 I think that might be a doable move but if you went close to the $2000 it would mean that they might move out as the disparity is too large. 

I ran out of cash and now need to finish up.Options:1) I have heard about interest only payments and refinancing at the end, but I don't know how to find these.2) I also heard about a program called Homestay  that provides the renovation money and then refinances all in one. the interest rate is a bit higher than a regular refinance since there is a loan involved. but is doable.3) is there an option 3??

That seems doable in the information given but more details would have to be known.

Currently, its doable for me to put 20% down and because its over 4 units , this becomes a real business where there's room to increase value.

@Ryan Spearman Like most people have said, it definitely is doable!

Since you are trying to have a place for your family that you rent out to cover your costs then this is usually very doable.

Maybe someone can refer me to a reputable contractor or someone knows whether this is a trap cause it’s not doable but here is my thought process:2 family house with a finished basement, accessible from the outside (don’t know why this isn’t considered a separate apartment) and from the looks of it each apartment is accessible through stairs which is a common area, which leads to the attic.

Even not military(me) it is still very doable, but a little more difficult.