I'm excited to get started on this project and I'm confident that I can do a successful flip with the right team of people around me.

My yearly cost to run my STR is $30k and I've been bringing in $100k for the last 2 years.

Start by learning a lot, meeting people, looking over deals, and choosing a keen spot.

Does that mean that I can only rent the place out to people that share the same finances?

I have convinced a few people locally that we may be able to find some good leads and we are actively in the process of trying to find them. 

It seems pointless to try to sue someone in Japan which is where the owner lives.Get the city to bring a public nuisance suit, and have it ask the court for power to abate the nuisance, which can be as little as board up and as much as demolition of the house. 

I know a lot of people say there are insurance issues and the tenant can sue for things if it's not permitted but if I was the one occupying it and renting out the main house would that be better? 

I buy materials from specific distributors, good product, warranty, net billing etc.I think using a reputable general contractor is best for most people, volume of flips is generally the focus (plus margins) Christian's comment said it best.

Most people on here are way too overleveraged.

Ask yourself, what is it that you bring to the table of those?