If medical center – plan is to either build and rent or sell, not sure which.

California civil code says the only way to sublease is if the owner has to move out due to medical reasons.

He left the daughter with no cash-only the farm, balanced by a lot of medical bills.

can y'all recommend the best way to remove medical debt from credit report? 

If so, the home may still be eligible for the cap gains exemption for your personal residence.

I'm not familiar with NJ.PatPat-  You and I would have to disclose to future buyers however banks and government agencies like HUD and VA are exempt from seller disclosure laws

My husband and I both have bad credit and not enough income to cover current debts due to a series of circumstances with both our jobs... layoffs, medical issues which caused job loss, etc.

They got broad exemptions from planning and zoning in exchange for (supposedly) providing most public services themselves.  

You aren't a homeowner occupant, you're a RE dealer, operator, investor, so laws are different as to exceptions to Dodd-Frank, while you may have an exemption from that Act, you are still subject to predatory lending issues.

I knew that I would need to consult with a RE attorney to have the agreement drawn up, but I think that I may qualify for an exemption from Dodd-Frank because I am a little guy, (seller finances only ONE property in any 12 month period), as long as I complete a Seller Financing Addendum and adhere to Truth In Lending Act disclosures.