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. 

What you’re suggesting is not cash flow, it’s return of principle, giving her her own money back  If she sells with your deal.

I'd have suggested a down payment assistance program for your first purchase.

There may some merits to investing upstate/western NY, but I would suggest doing some serious homework into eviction timelines, annual rent % increases, etc. 

She said mine broke and someone suggested replacing it, so she did, with another used one. 

I’d suggest reaching out to some local agents in the area.

There’s a lot of great suggestions in this post.

•Consider testing the rental market by listing it 60 days before you plan to move.I’d suggest pulling rental comps on Rentometer, Zillow, and MLS (if available) to get a clearer picture of demand.

My coach suggested (and I implemented) a "must do tracker"....it's a color coded spreadsheet (I like to print multiple copies and keep them on a clipboard to stay in my sight/top of mind).