(Yes, I made my first million buying pre-foreclosures using Subject To" and I hold the record for length of time fighting a lawsuit (6 years, that went to the U.S. 9th District Court of Appeals, winning at every step along the way) regarding one of the purchases.Buyer Beware and Be Knowledgeable.

I know you want a triple dip, 1. buying the house with superior knowledge (that's the one the lawsuit would be about) 2. collecting the listing fee and 3. collecting the buyer's agent fee, I think the judge would see right through it and agree you broke fiduciary duty and took advantage of the seller. 

(Kylie Cooper / The Seattle Times)Several of the largest property management companies operating in Seattle conspired to drive up rents and decrease competition, three lawsuits filed this month allege.The cases, filed in federal court in Seattle, focus on the use of RealPage software, which gathers information about rental units and rent prices and uses an algorithm to recommend how much landlords should charge.The complaints claim that by exchanging detailed and “competitively sensitive” information, RealPage and the landlords have illegally created a “cartel” to set prices in violation of antitrust laws.The widespread use of RealPage has increased rents across the country and in Seattle neighborhoods such as downtown, Capitol Hill, the Central District, South Lake Union and Queen Anne, the complaints allege.The lawsuits, filed on behalf of tenants, cited an investigation by the nonprofit news outlet ProPublica that was published in October and detailed the use of RealPage in Seattle and other cities.

Your Question: "I just wonder how far it would go" Lawsuits like that are subjective, that's why they become lawsuits.

Lawsuits.  

Just a couple of thoughts.Fully paid off houses make you a target for lawsuits.

A lawsuit costs between $25,000 and $125,000 and runs about a year and a half and puts you under scruitiny for everything you do and have done for the last 3 years. 

By the time the lawsuit was said and done, the ARV of the property had gone up to $600-650K - a WHOPPING ~15% appreciation.

I can't believe there isn't a massive lawsuit yet against the government.Account Closed  I thought the same, but re-read it and I think the poster was more expressing surprise that for a state as progressive as California, they've never had a woman as governor or sign a bill into law.

That won't stop somebody from naming you and every LLC on a lawsuit, but its one strucutre.