The more I'm thinking about this the more red flags I'm thinking of.

Think of Sears, Toys"R"Us, Best Buy, CVS, Dollar Stores (600 Family Dollar Stores are set to close; 370 Family Dollar and 30 Dollar Tree), Walmart closed 11 in 2024 so far, Applebee's, Red Lobster, Stop & Shop, Rite Aid, Lehman Brothers (a 158 yr run), Bear Stearns etc.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $472,500

It is currently operating as a short-term rental.

What made you interested in investing in th...

Many cities allow short-term rentals in Pinellas County, such as Largo, Indian Rocks Beach, and unincorporated areas, which all do very well with short-term rentals.

If so, that's  a red flag.

As a HML since the late 80s this space along with the syndication space is just full of these stories. it is so important to make sure you invest with sponsors that are rock solid..

Have you considered Indian Rocks Beach, Largo, or any unincorporated cities that are a short drive to the beaches?

What to Stay Away From: Are there any red flags or pitfalls that I should be mindful of when selecting properties to flip? 

Less red tape & quicker closings but typically the rates and lender fees are higher.

Without knowing more details about the specifics of the project being proposed as it relates to your property, it's hard to say if there are any obvious big red flags that could negatively impact your property's future value.That being said, I would try to find out as much information as possible about the new apartment building's design and layout - the two big things I would try to ascertain would be the location of the garage entrances/exits, as well as the location of any outdoor amenity spaces (pools, terraces, dog runs, etc).