Further, I make very little money on my regular job, so my debt to income ratio disqualifies me for conventional financing.

However, it's true that I have a great fear of not earning enough fast enough and regular conforming rates rising too high for my sweet spot for new purchases.  

In this process I keep investors from out of town posted on developments however regularly they want them. 

This will drastically mitigate your risk, while also allowing you to diversify across multiple properties, as well as having a regular stream of selling and buying cycles.

From what I can determine, these folks are working a regular job with personal houses, families, etc. and aren't rolling in dough.So BP, how do these individuals do this?

It is just easier with a partner who is also local who can view the property with me on a regular basis as well as help with purchasing materials, etc. 

I do this pretty regularly in other markets. 

I, personally, don't know why they don't just make flood and other disasters simply a required part of all regular homeowners insurance for any insurance company wanting to do business in the US.  

It's just a regular lease agreement with the seller.

I know a lot of people knock GoDaddy because they're a big corporation, but I'm on the phone with registrars/hosting companies regularly (I work in digital marketing/web dev) and they have some the most competent support staff.