They know that they can get away with it in many cases especially if the law disadvantages people unlikely to be able to fight them about it.

All these threads are showing the disadvantages of buying a fix and flip at auction, there are advantages too!

Just curious what the advantages/disadvantages are to different property foundations.  

I have a much better perspective on financing my first out of state property and I see the advantage and disadvantages a cash purchase will give me.

Both models have advantages & disadvantages.

From what I know, it is possible for investors to flood a market with capital which drives up pricing (over paying for property, incorrect appreciation assumptions etc) and/or can make deal terms much more restrictive (i.e. cash offers vs financing) which puts traditional owner occupied purchasers at a disadvantage in the short term however in the long term the market will correct for any errors and pricing will remain at it's market equilibrium.

One disadvantage of the 1031 process is that it can cause you to make deals under time pressure, so be careful.

BRRRR didn't work for me in Indiana - ARV not high enough, renovation costs over budget and I'm at a huge disadvantage being 2000 miles away.The people I've seen do this in recent years are high earning tech workers in CA making $200,000+ for a single person or $400,000+ married couple and they were able to scale pretty quickly from 2015 to the present and leave their W2 jobs. 

Of course, back then (in the 90s) there wasn't any real internet or Bigger Pockets to get advice from, so I had that disadvantage, but nevertheless I made a poor decision by selling in hindsight. 

Bottom line, there are many investor realtors who do a great job, but it can also be a disadvantage.