If your bank/lender cannot appraised the property for the loan, that is a big red flag! 

I see some red flags, and I'm wondering what other investors' experiences have been in this kind of situation.The potential tenants seem reluctant to apply.

The long term capital improvements: roofs, windows, siding, knob and tube wiring, sediment filled pipes, roots in old sewer lines, etc... is what costs all the money.The 8/4 is a total gut remodel.

It seems like you really need to go the whole hog and buy a $200-$300K property, scrape and rebuild for $400K or so, and sell for ~$1M to see the true margin that makes things repeatable and scalable.At least, that's what I'm seeing in terms of a strategy that does not rely on the red hot appreciation of the last few years to carry values over a given 6-12 month period.

I'm looking at this as a red flag and of things to come down the road. 

* Red flag when I see no access to the furnace...how the heck did they change filters or do yearly maintenance on it ? 

The reason I say that is because there is not as much red tape with that type of entity as there is with the amount of money is needed for development and the investors/partners that are needed.Good luck!! 

I'm compiling a list of key words and listed information for a VA that will be scanning MLS and other property listings that are an immediate red flag about that property.  

If it has constant turnover or a history of no or partial payments that is your first red flag.The good areas that I like have pretty much been picked over the last 4 to 5 years.

Are there any red flags that I should be aware of?