My first red flag was when you said partners - one partner is already bad enough, multiple are a recipie for desaster! 

I will ask for every red cent I can make the market bear for it.And if my appraisal comes in low, I will absolutely argue about it until I've either gotten my way about it or had the appraiser tell me that under no circumstances will he consider further re-evaluation... and I've had it go both ways.Am I nice about it?

For instance, moving from Red Florida to Blue Detroit might get you slightly better returns for a while, but what about in a few years?

Also, if you are relying on the information someone shared with you to arrive at the conclusion presented in your first forum that’s a red flag.

Start by getting a red pen and writing on the envelope the missing info before sticking it in their box.

While I cannot conclusively comment on the legitimacy of their operations, several red flags became apparent to us.

Code for your area may include plumbing, electrical, bedroom windows (proper height, width and clearance for egress), some areas require sheet rock around the heater and hot water heater. 

Want to make sure we have good coverage and not missing any hidden red flags since we are out of state investors.

Sounds like a hard money lender that wants to take a property from you when you default.There's a lot of issues here starting with a guy that will loan you money and once it gets difficult wants you to abandon ship- red flag.There are a lot of unknowns here but trying to dump it seems like a 100% guarantee to lose money.

Setting aside what you say is drama there should be a number of red flats regardless.