For Sale property was sold for 2x price a year ago, what do you assume?

[Vincent Donato]

I'm seeking out distressed property on Long Island that could use some rehab. I have come across a handful of properties that are for sale, but were sold within the last 2 or 1 year for sometimes double or triple the price. 

Example: November 2023 sold for 500k
Listed under foreclosure for 260k now.
Photos don't show any updates or signs of any rehab being started.

My first guess it these were bought as rehabs without inspection and people found severe structural issues that they cant afford to remedy, which is common with the amount of water around us on Long Island.

What other assumptions or conclusions would you draw from seeing listing like this one?