We’re considering reaching out to local hospitals to offer it as housing for travel nurses and doctors, but we’d love to hear any advice or suggestions on the best approach this?

Suggest you go to their site, there is approx 7 videos for you to watch to see if you want to go to the next step. 

So you're not worried about current income...totally understandable, wish I was in the same boat ;-)

I’m not familiar with those markets, but I would suggest finding some meetups and attending as many as you can.

I would prefer to sell the property vacant or the easiest less stressful way as possible, however I was advised that could deter investors buyers interest as the rental income is a one of my strong selling points.I am open and would appreciate any thoughts and/or suggestions from fellow agents or investors alike.Thanks

Suggesting to them buying their house for a wholesale range offer or lower dependent on the extent of the rehab, then having a contract in place that gives them a percentage of the profit to help get them back on their feet, paying off debts etc.

There are some great suggestions here on down payment, interest rate, servicing, and underwriting the borrower.  

I'm curious, at what point does this reflect poorly on PM and suggest I should get antoher PM?

Following this as I have my license as well in a similar boat.

The only item I would suggest is double check the payment terms of the your HELOC... in particular, can you pay interest only or are you required to pay a portion of principle each month on the amount utilized.