Just as the current way of business was rooted from about 100 years ago and the MLS took center stage the last few decades, things will change.

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.

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!

Anne  Your welcome the over improving the properties is rooted a lot with turnkey companies and brokers .. you know the granite and stainless and other higher end finish's that look great to an investor but really are not necessary for a renter.. 

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

But, if you keep up a pattern of switching farms every 8-15 months, my guess is that at some point you begin to raise red flags. 

Some companies clearly demonstrate red flags if you look on the reviews.