.* he had fallen getting out of a cab and he couldn't walk for the next few days* he had spent all the money we'd already paid him on fixing up his own house and couldn't pay his subs that weekSo many red flags and warning signs along the way.

Would 100% raise a red flag, 90/10, 80/20?

I have experimented with a red "confidential" stamp.  

RED MORGANThe returns are a lot lower there than they used to be, and there are just a lot of other markets with higher returns.

yeah i agree with stephen l, you don't need a lawyer to file for LLC here in the red stick, i had to send $100 filing fee to have paperwork registered with sec of state web address to file online is sos.la.gov just type it just like that, i also had my bank file for my EIN when i applied for a line of credit application just have to talk to your local bank that you deal with real nice and they will work with you, the 1 i deal with is capital 1!

Real estate is a tough go rooted in death.

But we often buy houses that have been sitting empty for some time and have plumbing lines that have become blocked with tree roots and debris. 

That is a red flag and in a down market could be a big issue.

Lessons learned:1)Fire a non performing PM early and often ... they NEVER get better.2)Don't buy out of state where you can't verify issues & solutions or easily take control to straighten out a mess if need be.3)Repeated visits for what seems like the same or similar issue are a red flag which should NOT be ignored.4)Use licensed, bonded electricians who pull permits.5)Trust but verify.6)Be careful about who even bids your jobs.

If they made 18% +/- on the buy, they could actually sell for less than they paid and still not be in the red.