Those floors are generally durable, but one flaw is they can be torn easily when moving appliances, or even large tables. 

So far most other interested parties for this house have appeared  worse -  pre checks have uncovered evictions, multiple arrests, etc. 

When escrow is opened (via deposit), they will order title reports from the company you choose and uncover any existing liens on the property including delinquent taxes.

I agree about scaling and walking around the hood with a wad of cash is stupid but that’s what these people know that’s your clientele and you gotta  know your customer and willingly accept their flaws .

For instance, what if I identify a property for the exchange, but then, after performing due diligence, decide against purchasing the property due to a defect that is uncovered during the inspection?

Without proper financials or there is no basis for valuing the sales price, the whole reason for an inspection period is to uncover uncertainties.

Is this approach inherently flawed? 

Not sure how your MLS is in Florida, however if you are recommending that to anyone in our area it has flaws.1) Our MLS does not list what the selling agent is getting for a commission.

We got lucky uncovering some beautiful original pine floors that all we need to do is sand and refinish!  

There is also a man I've been listening to, uncovered some myths about owning apartment complexes.