If you received a basis step-up at dad's date of death, you may be able to sell with little to no gains, and then choose to invest those funds in an alternate property closer to home, if desired. 

The only PITIA paid from personal account is for a personal residence.

My personal return is fairly complicated with Trusts, partnerships, W-2s, and several K1s.

Well, you've chosen arguably one of the most desirable places to live on the planet, so it's not surprising it's so expensive. 

Recently she changed her will and named us as personal representatives and is leaving us her property when she passes(crazy I know).

The notice of a tax sale may not get to the right person to pay it off. 

Build a home and then purchase that product with a personal conventional or FHA loan? 

As a result, the property became more desirable and attracted more high-quality traveling medical professionals.

This is an extremely important point, because if there is no clear rules defined by each person, then it can be confusing and lead to anger or resentment between partners.

o Commercial loan, sort of - they are 30-year fixed DSCR loans with private national lenders.o We close in an entity/LLC 99% of the time - very rarely do we receive a request to close in someone's personal name.