removing or covering 8" solid wood tile

We have a home that was built in the mid 60's that we are renovating to sell. When we removed the carpet we discovered part of the home had 8" solid wood tile that has had some severe water damage, in several places, before we owned this house. I think we need to remove the tiles but my husband wants to just cover it which would mean raising the remaining floor with a subfloor to level it all. We are looking to put the new vinyl wood look flooring down. This home has a cement foundation that has had some work, again before we owned the home. Can someone direct what is the best route to go