It might be possible to put the house on the market as-is? Or close to that? I didn't think my little cabin would sell. I'd bought it needing attention, did some work, and after a couple years, decided a 1-2 hour commute each way wasn't working for DS and I. The real estate agent I worked with did a great job lining out the items that Must Be Done and lining up contractors and bids to choose from. It was still stressful, but not as stressful as it would've been if I was trying to do everything on my own. So shopping around for a great agent might help the house-sale option.
Option 3B would make me super nervous. I worked through supervised visitation issues with AXH and DS, so I'm looking at it with hind-sight goggles on my situation, but I'd find that infinitely more stressful than doing all the repairs and upgrades on the house. Just something to consider.