Hey Dan, It could be a huge red flag if the DST Sponsor is not providing their track record.

Make sure you’re not just adapting; you’re leading the charge into a bold new future!

So, a property may be in a "red" area on a map due to proximity to crime in the past year, but the actual location of the home is perfectly fine for a long-term, passive investment. 

In your example I see nothing wrong and no red flags with this request.

The situation with the private lender is concerning and raises several red flags.

RE transactions are extremely inefficient and that's red meat for big tech.

We have rough plans below (red outline is the original footprint). 

When the lenders pull out of a market segment it is a real red flag!

For example, often fire damage is water damage--they put the red stuff out with wet stuff.

Why make it even more complicated by trying out an unproven concept instead of going for the tried and true, at least for a first project.Otherwise, it’s awesome to be bold and original and your idea to distinguish yourself from the competition is a great one generally speaking.