Is a fix and flip loan the best option for this scenario?

If you are looking to leave your job, i think fix and flips would be the better option.

also, I am exploring different funding options including HELOC, HEL, etc.Given current rates are quite high and sticky, how do you recommend to utilize these funding options?

You may have a couple options available to you.1.

But, it CAN give you some more credibiilty and options.  

Even wholesaling is an option... though I'm considerably more leery of that one. 

When someone is exploring where to dump a ton of money, it would be smart to explore all options...not just the city with the best weather and tacos :-)

So the only option is to pay in full and then buy the house, which makes the price way up.

That's a perfectly good option if you're up for it.Remember that the goal of a house hack doesn't need to be to 'eliminate' housing cost entirely. 

They also assume the rent-by-room option is the best way to go because they can get multiple nurses to share a home so they want to buy a larger home, thinking they'll rent out all of the rooms and make more money.