Having trouble getting any quotes for a low value SFR (<100k), any leads appreciated

If its a log cabin it might have trouble qualifying for the refi - would be smart to get some opinions early if that is your gameplan - would likely be a bigger potential hurdle than the gift/original purchase process

We are having trouble figuring out which deals we should tackle first but are prioritizing wholesale to build capital.

Not all realtors understand the requirements, and even when they do, don't always try to keep you out of trouble.

There is a way of waiving the account at the state level by certifying certain practices but it's more trouble than it's worth and easier to just keep an account open. 

What reason I can give without getting in trouble with the law?

You could just turn it in to your insurance it will be less trouble but make it part of an eviction if you one. 

I would say ADU is good to be built in the hill side, and/or where the neighborhood allows it and/or neighborhood with the large houses built in the 1920/1930s.If one is building ADU in 2005 newer neighborhood 1.3 mil house hence comes the trouble LOL

You need to show them how you can be a solution to their troubles and then actually deliver on that.

Why are you on the fence about them?