Assuming this scenario is true, I cannot see a scenario where coastal RE near Los Angeles does not have over sized appreciation.   2nd homes is not going to make a significant dent in this increased demand. best wishes

That is the true value of participating in things like this that are a bit more involved. 

Your true return has to be risk adjusted.  

With actual cash, you just transfer it. yes, but you can still bid with lender approval - without appraisal contingency - you send in deal (app), it gets approved by lender its functionally the same as cash (except in true lightning speed situations where there is a quick auction with little time to prep but thats generally pretty rare I'd think)Right, but that's not cash or functionally the same as cash because the lender can change the terms at the last minute, as often happens with less experienced hard money lenders.

So true.

This is especially true with single family homes.

Switching the utilities into their name without safeguards in place—knowing the tenant might act out—seems like a misstep on their part.While it’s true you’ll ultimately have to cover the cost, it doesn’t feel entirely fair for you to shoulder the consequence of their decision.

This is true, but can increase your chances of success by working with an experienced team.Financing Challenges: Unexpected rate hikes or tightening lending restrictions can complicate your plans. 

Is this true?

Two things are true at the same time. 1.