If I were in your shoes I would simply look for a co-signer to a loan and look for a small-multi family in your home town where you can house hack.

So, 400k - 500k sounds like lots of money but if you wanna operate in the 300k+ entry point it get can swallowed up quick.One strategy I'd try is to be a buyer at the auctions, win a bid on a good house, close on it in cash (you should be a great deal under market value) and then get into a delayed purchase bridge loan product which will cash you out a certain percentage of the purchase and supply the rehab funds. 

Some sellers may not care and those that are in protected class's IE non english or simply not educated might still get taken advantage of..

It is better to find a win/win as you cannot force them to stay.

Yet, it seems common practice for wholesalers to use this contingency to back out of the contract simply because they have not found a buyer within the inspection period.

I know that - but what I was thinking was simply: well, if the housing authority will pay $1,550 for a 3 bedroom, why would any landlord in the world list it for less?

However Zillow and Furnish finder are simply going to give you a lead.

I’m almost hoping she rejects my offer because it’s so complicated, but it kinda seems like it could be a win win.We pay $2600/monthI’d offer her $3k/month ($600k @5% 30year amortization) plus I handle taxes and insurance.

(Plausible for a $5k win.

You could structure a win-win situation where Investor A (the seller) gets his proceeds to cover the work on the remaining properties, while holding the note for you.