Selling the old homestead

I'm going to sell my rental property.
I'm tired of being a landlord - the role never suited me - and I would rather have the cash to invest in our place here at Pearl's End.
The house in question is a three-bedroom frame home on a quiet street on the far eastside of Delphi, Ind.
It's the home where I did most of my growing up. We moved into it in the spring of my third grade year (April of 1954) and I lived there until I went off to college in September of 1963. My parents lived there until their death - dad in November 1997 and mom (seen here just to the left of her Buick) in October 2000.
I tried to sell it during the first six months of 2001, but got no offers despite the low appraised value of $92,500.
I then hired the Realtor as a property manager and turned it into a rental property.
Go back to my archives to read about the tenant from hell who was my first renter.
The current tenant is a single mother with a young son and she's been extremely low maintenance and pays her rent on time.
When the lease came up for renewal last year, I offered to sell the house to her at the appraised value, even though I believed the value had increased since the appraisal was made. I did the math and showed her how she could save between $200 and $300 a month with a mortgage, compared with her current rent, and I explained how she would also be able to deduct all of her mortgage interest on her income taxes and how she would be building equity, rather than just throwing away $750 a month.
But she declined and opted to continue as a renter.
This time, I'm clearer about my objectives and will tell her I have decided to sell the house. I'll tell her I would prefer to sell it to her because she seems to like it there and I think she's a good fit for the place. But whether she buys it or not, I'm going to sell it.
If someone else buys it, they may choose to use it as a rental property and keep her as a tenant or they may want to use it as their primary home.
But the bottom line is, she'll have to become a homeowner or move.
So what will I do with the proceeds?
I plan to raze the two crappy, dilapidated garages we have - one of which was illegally built in an alley by the previous owners - and erect a two- or three-car structure with an upstairs photo studio/office. I'll also rip out the rotting wooden deck between the house and the garage site and put in a concrete patio surrounded by a privacy fence.
That just for openers. I'm still chewing on other possibilities.