OK, time for an injection of truth into this thread....Wholesaling is NOT illegal in Florida and you can certainly advertise.  

The injection of taxpayer capital (ugh, don't get me started) into the riverfront could spur some gentrification to the north there if the initial investors were brave enough.

Soil improvement should be accomplished through grout injection points to compact and improve the density of sandy soils beneath the home.

Today there is so much out there--just absorbing it all could take years.It is like when consumer products firms realize that past a certain point, giving someone too many options or choices produces the wrong result--they don't buy  (think 25 kinds of ketchup, buyer just freezes up)...I love websites like this, but sometimes they even add needless complexity (some times with good reason and sometimes not) so this a good chance for the experienced 10% to inject simplicity.

I obviously can't inject myself into their family affairs but is there a way that I can at least find out if all the above info is correct?

The sellers win because they got out fast, the buyer got a house they want at retail value, and you got to inject $1000 plus legal fees into the deal.

And it was a cash-in refi where a new injection of cash was needed to so the new loan met the lender's LTV requirements.  

Furthermore, when RE takes a downturn, because most investors leverage their properties, REAL losses occur due capital injection to meet expenses and foreclosures.  

Whether you do it via 1031 or direct cash injection, keep in mind you must own physical assets, not just stocks, to be considered an active investor, and be able to reap all the tax, and government benefits of an oil & gas producer.If you have any questions on oil and gas or how a 1031 works in this scenario, leave a comment and I will reply.

Optimal on those is to get an interest only loan so the payments are real low while you inject capital into the property itself.