Not only is it the right thing to do to help them get their legal ducks in a row about knowing SPECIFICALLY what the seller did wrong, ie did not disclose and can prove it was done for the sole purpose of deception to make the sale "smoother" but it can help you look good and have you learn how to avoid in the future (as you say "tighten up your due diligence")It sucks when agents "help" 1st time or largely inexperienced buyers long enough to make the sale and get their commission but then peace out on the client when something like this happens.It It seems like you are attempting to do the right thing which is admirable bc at the end of the day, the court system is the closest thing to a "business police" that ppl can get. 

You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.

By avoiding traditional financing, we moved swiftly to secure the property and maximize its value for a quick resale.

Armando,The best way to avoid issues is to buy a Multifamily (2-4 Unit) as your primmary with 3.5% down. 

My assumption is they avoid the headaches or have too many in their flip queue and would rather assign.

The focus should be on eliminating vacancy and avoiding chasing unreasonable rental rates, especially in the slower winter months.Here’s a chart showing the median sales price of a single-family home in the City of Austin this year through November:The median sales price for a single-family home in November 2024 was up roughly 8% from the beginning of the year.

Otherwise you’d have to look into 1031 to avoid those.

They do a better job of advertising at the same rent and you avoid another month of vacancy, paying for themselves. 

However, keeping the property and borrowing against the equity (via a cash-out refi or HELOC) allows you to maintain your tenant and rental income while leveraging the equity to expand.Key considerations:1031 Exchange: Great for avoiding capital gains taxes, but make sure the new property offers better returns or diversification to justify selling.Borrowing Against Equity: Keep the steady Denver appreciation and tenant while using the funds to acquire another property.

I think issues regarding this can be avoided mostly just by tenant screening.