I think it's a great idea to pay off school/car loans first - will always look better in the lenders' eyes.In terms of your choices for your next move - I don't think you can go wrong with Raleigh, Denver nor Austin.

Being on the state line will give you the choice of which state offers the best residence/real estate/tax laws and investment opportunities. 

It's easier to find a buyer if you have a deal.A lot of people think you need to know what your buyers want, and that is true, but you can bet there are plenty of buyers for the basic 3/2/2 1,500 sq. ft. house (with an ARV that is below the median value for homes in your market).  

Single family homes are actually a better bet most of the time in this market. 

I am a licensed HML here in Oregon  that requires a NMLS license however don't owner occ as the liability and the extra paper work are not worth it.Credit union I bet will help you with  free and clear home

I would attempt to save the existing drain field, perhaps it may only need to be flushed; have your septic guy give you some alternative suggestions and make the replacement the last choice as it is the most expensive.  

@Russ Swan your best bet is to use yellowletters.com or listsource.com to help with your mailings you might can partner with someone in your area to do mailings as wellgood luck

That was my choice as well (to simply address the letter to the owner and not mention anything about the passing).  

If the latter is the best choice should I cash-out refi or sell to recover my money for the next flip?

Big caution when you leave your job weather your choice or theirs you must pay all of it back within 30 days.