Sure, rates may be higher than what you'd get from a traditional bank, but you'd close quickly, avoid the red tape of a bank, and they won't care about your daughter's trust.  

So I am going continue on with my traditional property management company I am starting and provide the virtual assistant service as an option.

With a mortgage still owed on the property of about $230K can I still do a traditional Wholesale deal?

You can certainly do lease options as an agent, using traditional listing agreements.  

If you're looking to flip or wholesale, you're more likely to win the lottery than to find a deal on the MLS.  

My goal is to buy and hold single family homes (traditional 3 bed 2 bath).

There is almost no way you will find a lender who will do a traditional mortgage for $20 with $80k in repairs needed.

The overall cost was more than a traditional house because the asbestos removal has to be contained and disposed of in a different way.

I'm in that space in between traditional financing and true hard money.

I think that most people's bad experiences with the program stem from not working with a team that knows their way around the program.You're right that appreciation is not guaranteed - but that is true whether you go with a 203k or a traditional purchase.