But with many deals facing the stress these days for deals where investor loses their original capital what are the implications or options and the tax treatment of that, and how would it be different than just a simple depreciation which is limited by passive losses? 

Another option is an actual commercial loan.

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

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!

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.

Does anyone  have advice/tips for lending  options  . 

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

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?

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