Actually, having a an optional car to rent might be a great idea!

If you have experience investing in this area of the country and can shed some light and insight into taxes, insurance, Airbnb options (easy/hard/impossible), permits, flooding, other potential issues, etc., I'd be most grateful!

Out of state investing is a great option especially if your state isn't as investor friendly. 

Airbnb because it's for furnished rentals and Zillow because I've found people looking for unfurnished often convert quite fast when given a long-term furnished option.

James,There are several grant options and DPA program out there have you reviewed all of your options and compared them to BOA? 

Are there any other options aside from the rehab loan other than cash? 

One way of doing this would be to keep everything currently in your father's name, create a living trust, and son and daughter would be beneficiaries of the trust, and properties will remain in that trust upon your fathers passing in the future, from there you will have options as to what happens. 

There are a few options, but before you think of paying them off...can your money make you more doing something else?

I thought going in that we would start an LLC but have come to learn that LLC's have very limited lending options for real estate and that our LLC would require us to file taxes as a business because there are 2 of us.

We've spoke with multiple banks at this point to get a few options.