Then continue to use those funds to BRRRROR2. 1031 Exchange the funds and pay market value (which I think is actually overinflated because of the supply shortage) essentially overpaying 50-60K on $700k worth of assets.In my mind, I'm thinking it's better to be cash heavy right now for when defaults come and continue to BRRRR and get the lost taxes back through wholesales/flips bought with the cash rather than overpay and lose the same amount on overinflated prices. 

I require a $200 deposit so that I can at the minimum get that amount and the guest knows they may lose it.And yes, they can remove some negative reviews I have been told - but again, you have to really work hard to get them to do it.

Unless you're buying it and losing money, this should be ok.  

Roof/hvac ageWeather conditions/damage/snow removal/landscaping/salt waterSiding/roof materials (cedar vs stucco, asphalt or rolled versus tile.)Landlord/tenant friendly state  And, as you pointed out, property price. you want to lose money?

Those with leverage and without section 8 tenants or conscientious tenants are losing their shirts.

Then your 'appraisal' is worthless.The appraisers job is to make sure the bank won't lose money on the deal.

If it comes down to it, would you rather lose the whole deal or maybe find a mentor and learn to do it right next time?

Hopefully I don't have to put any money down that I will lose if I decide to back out. 

I'm a US Citizen living abroad and looking for options to park some of my cash in something that appreciates rather than watch cash constantly lose value due to inflation.

If they are well known they've got something to lose.