So then I am looking to see what got them in trouble in the first place (who the debt is with- I'd rather see Sallie Mae and medical bills than a bunch of department store debt) and whether they are making the effort to clean it up (payment plan set up and they are paying it).

The note guy I'd chosen has had to deal with some very seriously medical issues recently.

I ignore anything medically related.

Now that I do the problem I'm having is a lot of traditional lenders won't lend under $50,000. second issue being that my credit isn't great not because of repos or foreclosures but more because of medical bills and old student loans.

My advice to you would be to look at this as your first day at college where you just signed up for a medical degree.  

Permitted uses: Bed & Breakfast, Medical Office, Office in Home, and duplex & SFH.

Type (medical or other?)

4) What should I be doing to make this happen with regard to our finances, our credit (my score is only 640, less than 6k in debt, all medical, all fairly old but still within SOL and the wife's is about the same, little higher score).

I am 59 years old and I found BP about a year ago and I have not decided which niche to get into when I get over my medical condition.  

The medical field is a major employer of Cleveland residents.