Seemed to me that there may be legal issues with doing this, not to mention it just seems very unethical, and outrageous that someone would be willing to agree to a deal like that anyways on a $20-30k house.Any ideas on that strategy or how that would work?

@Lisa Rispoli- How about this strategy: Get a bunch of your attorney and doctor friends (ones that are looking to park their money somewhere), pool everybody's money together and go out and buy a property cash.  

I know there are ways to make profit in either market with varying strategies, so why are investors so worried about it?

This is part of one strategy my wife and have for our investments.

(BRRRR strategy, tons on BP about this).

Example:  Purchase price = $250,00020% Down = $50,000Rehab = $50,000Cash required = $100,000 plus closing costs Mortgage =$200,000 (4.5% APR / 30 years)P & I = $1,013Rental Income = $2,500Expenses (50% rule) = $1,250NOI = $2,500 - $1,250 = $1,250Cash Flow = $1,250 - $1,013 = $237 per monthDo not forget the HELOC paymentIf you do the BRRRR strategy the difference will be in your mortgage payment.  

It ultimately depends on your investment strategy and what your goals are. 

My question is for any strategies that investors in more expensive markets like ours have to obtain financing.  

Thank you in advance for any referrals.Situation - Recently purchased a deal through my LLC with cash expecting to use the BRRRR strategy (not my first rodeo using this).  

One thing I've come to see reading and listening to all this information is you start to drift in many different direction because everyone's strategy is different.