@Joe Villeneuve around 300K of equity in the houseSell the house, take the equity, spend it or use it on your next house where you are moving to. 

Are there any house at that price point that would rent for $1200-1500/ month with 20k worth of updating?"

Zoning Ordinance ExceptionsSome properties in the target zone don’t meet the minimum lot area or width size requirements under the zoning ordinance, yet houses exist on smaller-sized neighbor lots.How could these properties get approval for development?

Use tools like the VA loan for house hacking and your Basic Allowance for Housing (BAH) to cover living costs while building equity.

How many micro units will you have in that one house?

Or paying off my debt, while I provide them with a nice house to live in instead of an apartment. 

We want her to live with us so she's more active and social, but our current house isn't suitable.

Many people buy a house with a FHA loan and then turn it into a rental but it doesn't mean it's always allowed.

Our experience is that IF the flooring is continuous AND it has been discontinued then they pay for the entire flooring throughout the house.

But they were selling an expensive house in California and had horrible credit.