Let them know that, unfortunately, you'll have to walk away unless they can repair the home to an insurable state.There's no harm in walking away.

No harm in calling a local agent and seeing properties and putting numbers together.Best of luck.

We don’t know anyone in the area, but you might want to read our series about “How to Screen a PMC Better than a Tenant”, since selecting the wrong PMC is usually more harmful than selecting a bad tenant: https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesAdditionally, don't treat property management like a commodity and just focus on the lowest price!

I also don't know if there's any harm is trying to market the unit as "furnished" once you close on a property for a slight premium on the rent.  

@Jonathan Harms Thanks!

That will add some much needed infrastructure to the area but I wonder if the clientele of that building will actually do more harm than good.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesWe recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

I will pass on the political discussion of how much harm this has done.MD also passed laws to make it tough to help people in pre foreclosure. 

Hopefully, you schooling and training will keep you out of harm's way at lease for a while?

But we have heard we may get a better deal, so no harm finding out, right?