I agree that this is a great idea, when handled properly.
Oleg pretty much covered everything but this 2013 post from SEORoundTable.com covers this tactic as well: http://www.seroundtable.com/competitor-domain-name-17032.html
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Posts made by TheeDigital
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RE: Buying Expired Domains with Decent DA/PA for SEO Purposesposted in Intermediate & Advanced SEO
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RE: Why does expired domains still work for SEO?posted in White Hat / Black Hat SEO
With questions like this, I tend to look at it not from Google's point of view but from a person's point of view. The spiders are getting smarter after all and Google always says to write content and create websites for people not the Spiders.
So to answer your questions, you might want to ask yourself these questions:
- How am I supposed to know that the links on my website are broken, because a site I was linking to is now down?
- How do I know that the domain I am now visiting was down for a month or even a year?
- How do I know said blog is being used for black hat purposes? It it has relevant content and helps me, that's all that matters.