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We can only go by what you post so I am gonna make some assumptions.....
-Your dad is financially very well off. He didn't make, or keep, that wealth by making poor decisions.
-Dad is a very practical guy.
Your post is full of emotion and reminiscing but that needs to be subdued in favor of the practical options. If you nor your sister want to buy the house nor rent it the options are limited. The only thing I can think of is one of the adult grandchildren live there but that will bring about a set of issues that you might not like....You want to preserve the memories but their comes a point you need to let go.
Dad might want the cash from the house to be added to the trust.