Perhaps it’s big enough to build a small self storage building on ?

I'm in the exact same shoes as you!

The power went out a few times on the block recently and they’re asking for the code “just in case”.If you were in my shoes, how would you handle this situation different?

Then Joe can use a servicing company to make the payments and be sure the nursing home is getting paid.In Joes shoes I would certainly not do a lease/option. 

Please share any creative strategies, or share if you've been in this position, or even just basic strategies that you'd do in my shoes?

If I was in you shoe, I would go with Option 2).

I already know that a clean nice lit storage area would be a great upgrade, and we plan on doing that to the basement, after we paint over the graffiti/etc  https://www.realtor.com/realestateandhomes-detail/...I appreciate it! 

A roll-away center island might help with storage and give additional working counter space.

If I were in your shoes, I would probably look to house hack, as that is the cheapest and easiest way to make two quick steps towards financial freedom. 

Attending some networking events is a great way to learn from others who have been in your shoes and  get a further understanding of the industry.