It could be just the nature of the deal, putting it out on MLS since craigslist is not drawing anyone. 

Also, even though flood insurance is not currently required, I would still factor it in as a precaution since Mother Nature has a peculiar sense of humor.

Are there any experienced virtual wholesalers that can break down the process assignment to closing aspect of the deal?

If you would make a list of things I hate, understanding what exactly is the nature of a lien on loan I am about to buy would be right there at the top :) Is it against the current borrower?

Often, because of the nature of the Condo Assocation, your Insurance Company may want it submitted to the Assocation first to determine what parts of the claim they will be paying. 

My stepdad is living in Greenville, CA and he has had a very hard time keeping insurance due to the remote nature and fire danger of his investment property.

This is assuming you can locate properties of lower class in higher rank areas.As to weather B or C area is better, the way I look at it is the following factors:Yield: What are my investment return goals, naturally higher risk, C areas will produce better yield. 

There will be another crisis, but the nature of it will be far different than in 2008.

Absent very specifica exemptions (Like fraud); For a consumer loan, SFR 1-4, loan to a natural entity, you may not file the first legal until the 120th day of delinquency.https://files.consumerfinance.... 

I imagine with your experience flipping might be a natural move?