There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

DM me whenever you get the chance. 

By the time a property is formally put up for sale in a town that size the locals have know it was going to be sold and had their chance at it.

EVERYONE is trying to crack the motivated seller code with technology or other voodoo tactics but they fail to realize that the inherent simple characteristic of "motivation" is exactly that it can't be equated, formulated or coded.Motivation is not about "if you exhibit characteristics "X", "Y", and "Z", you have a higher chance of being a motivated seller". 

After we drafted a bare-bones plan that considered their timeline, target rents, and capital reserves, they honed in on a medium-sized complex managed by a local group.. from what I’ve heard, these guys had impressed other out-of-state buyers before and delivered on their promises.

So, only chance in hell it has is via the BIGGEST action of it's kind EVER in US history, with coordination between the insurance carriers, and home owners.

Follow up with an email to the agent and bullet point your case, which increases the chance that the owner will actually hear them7.)

Sub2 is a risky strategy for a long term buy and hold as the longer the deal structure stays in place, the higher the chance that issues will arise (like issues with the loan servicer, insurance, seller filing for bankruptcy, seller dying, seller realizing their DTI ratio and ability to buy their next property is negatively effected and becoming upset about it like in your case, due on sale clause being called, etc.).

There is a chance a national wildfire or disaster policy will need to be created, some form of Government Service Entity such as Fannie and Freddie to stabilize the insurance market. 

The house has enough equity to buy a fixer upper and have some left over cash for renovations but just barely enough.