For more info on the tax incentives, read about Act 20 and Act 22.Additionally, the IRS recently designated almost the entire territory of Puerto Rico as an Opportunity Zone. 

The red flag is all I am looking for.

The comment that "sellers are greedy" Is such a red flag for me.

Purchase price: $85,000 Cash invested: $150,000 Contributors: Hannah Holland BRRRR in a small pocket of SFHs that is surrounded by commercial near downtown, therefore our lot is zoned commercial, not ideal for pulling out as much cash as possible, BUT due to Weatherford STR regulations, I am now eligible to STR this "commercial" property.

Realize some of the examples take you and your family out of your comfort zone.  

Especially if there is no multi families in your zoning area. 

Also, what are some red flags I should look out for so I don't get screwed by an investor who traps me in bad terms? 

I have found some land that is zoned for multi family and I recently heard about the VA 0 down Construction Loan.

In other words, take advantage of all of the benefits granted to home owners including lending, zoning, and taxes. 

The 2 biggest down sides in Southern CA is 1) in Single family zoned areas ADU additions add a value far less than the cost of the ADU addition.