While there is no one directly pointing a finger at you or shining a spotlight at you when you purchase these homes, if someone complains that you are fraudulent, took advantage of them, and lets the state know of what you are doing then you will be found out and given a cease-and-desist letter and potentially fined or more. 

Additionally, some paperwork she obtained from the city showing some fraudulent paperwork with her and her husband's signature from 2013.

This is the bank's gamble to try to meet their criteria, for example, Lets say the market conditions are stable, and marketing times are 30-90 days according to the agents BPO, or an appraisal, the bank might be inclined to accept offer #1 with a 30 day close and keep the other 2 offers as back ups.

Don't make the mistake of thinking you can reduce it to a bunch of formulas, some sort of gambling system.

So, it's all a gamble choosing one because of HQ2.

It always seems like the get rich fasr crowd is doomed to moroh into be the get poor fast crowed because they have no calculated gamble defined or endgame deliminated

In L.A there is rent control but I’ve heard of people buying out the tenants , this seems like kind of a gamble but of course if one can say double the rent even if you are paying the tenant a big payment to leave .. say $30k .. then it would be well worth it because the net income of the building would go up . 

For example, do you know how to identify a fraudulent id, or employment background?

I don’t think it should be that hard, besides Real-estate is a gamble no matter what!

OK formally stealing this quote  Love it so true.. its not cash flow is everything and appreciation is icing on the cake or gambling.