Now I can see some builders having an issue with comps.. but other than that its crazy to take these funds as income and then pay tax and plow it right back in.. 

Even if you had a good deal, how much did you make after taxes?

Did you have taxable income that could’ve been reduced utilizing tax strategies?

Tax liens2.

Not only were tax shelters stripped of their tax deferral capabilities, but they were stripped of it RETROACTIVE, allowing the IRS to recalculate tax shelter investors income going back 7 years.  

But the only strategic thing about them is that you need to keep good records and hire a tax professional who knows how to maximize the tax savings from things you already paid for. 

Hard money loans offer fast approval and don't risk personal assets but come with high-interest rates and fees, which can be tax-deductible as carrying costs.

Tax-wise, profits are taxed at your ordinary income rate, and frequent flips may subject you to self-employment tax if classified as a dealer by the IRS.

Also Seller hasn’t paid property taxes in 2 years which is a sign the property is in distress.

This might make sense, but again, you are just deferring the taxes and now pushing tax from capital gains to ordinary income.