I doubt most appraisers would see anything other than the sales price and have no idea that it’s a strawman fraud buy.

Bugs did make a good point about pre-buy. I remember Fraudera Ranch doing a lottery to buy.

For appraisal they are REOs, they should show in comps as a REO. SD Realtor can chime in here, but IMHO, I’d kick my realtor in the head and find a way to sue them if they didn’t do enough work to disclose that very similar homes are REO within a couple blocks. This isn’t an appraisal issue as much as “hey, there’s a bunch of these homes with a motivated bank owning them”