The seller was aware of work needed and priced it accordingly but was willing to reduce the price point for an all cash deal.

If I buy this property and the money comes from someone else's account, will that raise any red flags within the IRS systems?

@Daniel CruzOne thing I have learned from investing in section 506 house flip investments with regard to states is to be aware of states that are judicial foreclosure states versus non-judicial foreclosure states.  

My only real turnover has come from needing to raise rents to market value.

So I wrote a long article evaluating his claims, which he (apparently) became aware of, and then succeeded in getting Google to remove from search results.

.  :( Dang, I see your Enron and raise you a Radio Shack.

I am trying to find ways to raise capital to scale my real estate business.

Having "real estate investing" or "real estate" anything, in your LLC name will surely raise red flags for banks, especially as you move beyond net 30 accounts to larger credit lines.

There are some great tax strategies for short-term rentals, but very important to be aware of the personal use rules to make sure 280(A) doesn't become an issue. 

However, I could very well be 2 years waiting to invest locally as I wait to snag the right deal or raise more capital to give me more options.