The refurb will include structural so I’m assuming I would have to use the Standard 203(k), which has no price cap but limits you to a single contractor, six month deadline and requires inspections of all the workI’m guessing this would mean a much higher price tag for the refurb, and less flexibility around scheduling and execution of the workI am unsure whether a hard money lender would favor such a deal, but I would imagine that if we could secure a loan we would not be limited to using a single contractor and could get the job done for less.Exit StrategyIdeally, we would like to do a cash out refi after the refurb and roll the profits into the purchase of a multi-family.

A motivated seller will sell if a particular need arises that may motivate them as @Howard Abell has so aptly stated. 

As far as executing your project. 

How long can they drag this out for if the sale and relocation assistance is being properly executed?

Scaling Up: How a Few Companies Make It... and Why the Rest Don't by Verne HarnishThis is basically an advanced version of Harnish's "Mastering the Rockefeller Habits" where he really covers 4 things: Strategy, People, Execution, and Cash.

Many deals look great on paper but can falter based on execution or unforeseen market dynamics.

More power to ya.While this doesn't look good for executing a BRRR strategy, keep in mind that the properties you'd buy locally is probably 5x the price of what most people talk about with BRRR.  

@Neil Patel We use all of the typical marketing plans wholesalers use but the part that makes us successful in new markets is the people that execute those plans.

And, as noted above, many MLS listings have attachments that are required to be executed and submitted with the offer (especially REOs) and most include language in the "Realtor Remarks" section (which is not intended for or available to the public) to the effect of "Submit all offers on [Specified Contract] with all MLS attachments signed/initialed.

The option consideration funds fixing the problem and the option is for execution of a contract with price and terms that reflect the value added plus profit for engineering.