As Mitch pointed to, on one hand, STRs are housing supply locally and will likely get looked at. 

Here are a couple of ways you could structure the deal:Lease Option with Seller Financing: You could lease the property with an option to buy later, allowing you to rehab it while giving the sellers time to find a 1031 replacement property.Seller Financing with Deferred Payment: Structure the seller financing with no immediate payments, allowing you to refinance once the property is appraised, and the sellers can complete the 1031 exchange when ready.Escrow Holdback: Transfer the deed into an escrow account, giving you control without immediate transfer, so the sellers can take their time with the 1031.Third-Party Facilitation: Use a qualified intermediary to hold funds and facilitate the 1031 exchange while you refinance.These options allow flexibility for both you and the sellers.

Actually buying these apartments and not the current supply is a good opportunity.

I knew not to expect that in the future but was hoping to replicate some of that deal structure.

You could theoretically structure a deal where you are cash flowing negative, but have an overall positive ROI.

You can also structure a DSCR loan with no PPP however the loan will generally be more expensive than a conventional loan.

Once the disaster is over, someone from the lender will verify the structure wasnt damaged and then proceed with the funding. 

You could structure the deal any way you and the seller want.  

Housing supply is the other function, and my view as rates increase so does inventory in markets that are coming up to pre-pandemic levels and the inverse in the one's that are decreasing. 

I would be a job for you, but could be lucrative depending on how you structure the agreement.