But yes, there would still be a higher promote to the sponsor so your point is still a valid one. 

How tough will it be to turn a Quit Claim into a General Warranty Deed?

Three things that would concern me if I were in your shoes.1-$30,000  would almost re hab another property in bad condition.2- Make sure the inspector does a really good job.3-Have owner or seller give you a one year warranty on property.

I searched the tax rolls today and see that, in fact, my wife is now listed as the “Special Warranty Gift Deed” holder.I don’t understand how this can happen without my wife having signed or even really agreed to accept it.Thoughts?

the more expensive new options or try to find cheaper used ones that won't have a warranty? 

I don't have any knowledge of the Canyon Lake, TX market so can't speak to whether it's a good market or not - @Nancy Bachety brings up very valid points re: making sure the $250k purchase price will be competitive with other STRs in the area that are bringing in ~$40k annually.  

@Patti Silva It's a valid fear but you have to keep moving ahead.

@Chris Freeburg brings up a valid point as well regarding your budget as it will be a major limiting factor in most parts of the Denver metro area considering the avg detached single family price is now north of $650k. 

I agree being as honest and genuine as possible is the best route to go, a lot of youtubers make the argument that you shouldn’t tell them you are wholesaling because they will get mad but in my opinion, the advantages that come with a cash buyer make the assignment fee validated in my opinion and not only that but the fact that they are probably already having a hard enough time selling the property since it’s distressed and can’t qualify for financing, sellers should be grateful if anything.

Hopefully you can get a General warranty deed.