I don't know the situation that occurred in the OP but if you can alleviate at least one of the above and one of these parties knows what they are doing you will be ok.

Your freezing problem maybe alleviated a little with Pex as it is less prone to split when it freezes but you need to insulate the area prone to freezing.

I would really like to alleviate this burden for this family, hold their hand through the process and solidify my first wholesale deal.

I noticed they paid $385K for it in 2012, estimated their mortgage payment, and made an offer that would put money in the pocket plus alleviate #10-12K of mortgage payments during THEIR slow season.

There are also numerous transportation construction projects planned and under construction linking Nashville to Clarksville to alleviate traffic as Clarksville is one of the fastest growing cities in the country.

Learn healthy ways to alleviate stress. 

Only thing that could make something 'too far' is if it is a total pain to get to/fly to if you need to go out to it for some reason.I manage my out-of-state properties with property managers, and I buy turnkey to alleviate a lot of risks of rehabbing and all that jazz.You may need to find a market and properties before you find the property manager.

That may help alleviate some of the monthlies.

Any creative financing ideas that would help alleviate the immediate cash need? 

I too am curious about the implications regarding insurance, statements, and seller credits at closing.With regard to the bank statements portion, designating and third party servicer to whom you send your monthly payment, who then actually pays the underlying mortgage and provides an accounting could help alleviate those concerns.