At the end of the day, everyone's circumstance is unique so it is best to speak with a professional.

Would I need a broker's license to manage this property under these circumstances?

Another thing to keep in mind is that a structure is usually specific to an individuals own set of facts and circumstances. 

The IRS would look at the facts and circumstances.

It requires the grantor have the intention to pass title immediately, not at some point in the future if circumstances warrant. 

End result if you won that property at the auction - you won't get it because the original owner has that right to redeem - regardless of what the circumstances are.  

So short of a pandemic wiping out a chunk of our local population or something else of that magnitude, there is not really much that can change these circumstances driving supply and demand.And without changing the circumstances, the results will be the same.

Contractor Issues: I’ve read several posts about problems with the contractors/team provided, ranging from significant delays to neglect.

Additionally there is usially neglect, defferred maintenance and in some cases intentional damage caused by the departing owners/tenants. 

There are many benefits with section 8 in order for the tenant to be placed in one of my properties they go through a process with the committee then when living in the property they need to abide by lease rules and keep the property in shape, if major damage is made or neglect to the property by the tenant they may losE their voucher from section 8, so it’s a very good idea to go this route and food for thought you always know your property is up to date safety wise and livable with annually inspections.