any red flags etc to check for?

@Eve Favorse the first red flag was the nonrefundable EMD.Would not have even bothered making an offer with the condition.

Generally speaking, I have not seen underwriters look too deep into occupancy concerns related to second home vs investment property since Fannie/Freddie installed new LLPAs a couple years ago that make the pricing for each aligned in most cases.

I suggest you take a deep look at your community budget and determine the impact STRs have on your community.  

Hey MatthewThis question comes up multiple times a month and I (as well as others) have gone into some deep posts about it. 

Just not as deep pockets and wanting to consider all risks. 

While there are several reasons why you can be targeted for an IRS audit (including running for an office, it seems), the most common reason is the IRS computer finding enough "red flags" in your numbers. 

It wasn't until I narrowed my focus on ONLY ONE THING general contracting that things fell more into place...My advice is to educate as much as  possible and find a niche that you can dive deep into.Meeting in person is where I found some of my best friends and mentors in the space.  

I took a deep breath, explained the situation and where i was in the process and the fact that he signed a renewal of an original lease. 

As someone with no experience investing into a syndication, is this normal, a red flag, or possibly ok depending on other variables?