So we don't even have an approved inspection much less a lease with this potential tenant.

Quote from @Marco Bario: @Kris Kempe - You should consider the risks for you and the seller when wholesaling a subject to deal.

.: Any idea how far south the potential for Santa Ana or similar winds goes?  

In my opinion, making an offer site unseen is not a risk.

By emphasizing your qualifications as the basis for your decision, you steer clear of potential issues related to discrimination.

The seller said this is in a gentrified area so there's potential to rehab this effectively and get a high payout as shown in the last comp.

It's easier to scale with multifamily properties due to income potential and operations.

She’s currently not paying rent, and while she has some health issues and no stable income, she’s been communicative and open to general talks, with a possible option to vacate through a cash-for-keys arrangement, though this might take around six weeks and some hard work.I plan to rehab the property and eventually rent it out, potentially to a Section 8 tenant.

While I understand the risks associated with investing in areas unfamiliar to you, my budget forces me to do so.

And @Natalie Bender is right about spreading your risk by going into multiple DSTs.