or if you're looking to buy those properties do you generally just have to expect to pay for $600-$900 worth of inspections to cover yourself from any red flags?

That little slow down made some of the loans go into default before they were securitized which is a HUGE red flag. 

Any red flags we should watch out for?  

I am focusing on roughly 12 unit properties in the Hixson, Soddy, Red Bank area or renovating something on the outskirts of downtown and creating something similar. 

I'd say you're close and you need more research, estimating full bath and half bath at the same price gives my thoughts a red flag that you're too green, although it is mostly accurate (but still low imo) as it evens out, but applied individually, it's dangerous at best.

This is an area with no HOA so there wouldn't be any red tape from that end but I want to know if anyone has experienced pushback from Charlotte or Mecklenburg county.

Taxes in "red" states seem to be lower.

As others here have said, it fails the 1% rule and that raises a red flag for me.  

Up here in Dallas we didn't get much rain at all but we are rooting for Houston to recover quickly.Second, I wish we would have met before your received this property.  

They are red hot right now.