This way, you will eliminate the custodian completely with its fees, red tape, etc.

Are there enough red flags that I should run for the hills?

But we want to at least not in THE BIG RED every month. 

It's zoned for residential.

I've done a few Level 2 Alterations (Chapter 7) in southern Wake County and would recommend that you talk to your local planning and zoning department before jumping in, regardless of where you are (Wake, Harnett, Johnston counties.)

City Council with the help of local RCO's enacted restrictive zoning overlays that impact this area.

They can help you interpret the documents and identify any potential red flags.

I know that comes with much red tape with the different zoning laws.

If you’re looking for information on zoning, regulations and permits, I would start with one of them.  

In addition to the Phase I and the ALTA, it is a good idea to also get a Zoning Compliance Report.