property is currently in a reverse mortgage need $308k to satisfy. currently 3 units and wanting to remodel to create a 4th.Rural low economy market with high demand and very few rentals available in area.

They often have off-market deals that might fit your criteria better.

Factor in how much principle they would have paid off the loan and subtract that from the current market value of the home. 

It's been on market for about 180 days. 

The plan: I am identifying on/off market properties that are targets, will do all of the real estate work (listing, showing, advertising, vetting, etc) and will split the cost of the purchase of the home and the material costs for any needed repairs.The contractor will be subbing out portions of the job and be on site mostly full time until the project is completed. 

Similar to you, I'm thinking about other strategies for off-market leads and tried direct mailers, but not sure how effective that is for multifamily.

I don't know what market your rental is in.

Setting up networks of agents, contractors, and wholesalers in various markets. 

If we could afford the price point in our local market we would stay in the Southern California market but its simply too expensive. 

@Chris Elliott There are many options left in the market.