Qualify the contractor and highlight the benefits of working together which would include consistent work for them and regular paycheck.Personally, I'd buy the materials and never pay any money upfront, a "red flag" on its own.

I'm a REI newbie, but just from a personal finance point of view $500k income + "Wouldn't mind becoming a millionaire from this as well...." is a red flag.

A common strategy used by investors, such as those operating through PadSplit, involves purchasing the property, completing basic rehab, refinancing, and then using cash for the interior build-out.Another potential red flag, even without converting common areas, is the addition of individual locks on bedroom doors.

Red Snapper, grouper, barracuda for USD $4 per pound. 

One market shift and you're in the RED. 

People probably do this all the time, but skirting the law and subject to red tag if the city finds out. 

I know, there are plenty of red flags there, but I do believe it is worth the risk when I consider how happy it makes my wife, how life-changing it will be for the family, how minor the financial impact will be on me, and how it gives me the opportunity to practice the steps of real estate investing with forgiving tenants.Finally, I am going to attempt to self manage as nothing comes close to cash-flowing if you include PM costs.

It gives you the flexibility to get started quickly and stay on track without the red tape.

**Ethical Concerns:** At the time I joined, certain marketing tactics raised red flags for me.

Watching some of these videos and finding lots of red flags like that which beginners wouldn’t catch but experienced folks will know is b.s.