Is this a red flag, or could it just mean there’s an untapped market here?

And when a property cycles back to the market, it's not always a red flag – sometimes it's just market dynamics at work.

If anything you've maybe done it a bit too good as I have yellow-flags I'd sort through on DD side of things. 

Are there any red flags or challenges specific to this neighborhood that I should keep in mind?

I have just received the same callThis a legitimate business model for a STR company, but the website raised a lot of red flags and I would not feel comfortable doing business with them.

Even if you fail the first time (pretty much every inspection I've had the person finds something to flag) they don't cut off payment until they have come back out a second time.

However neither person is local , they both have filled out applications and seem to check out , but both have "Not for Real ID" IDs which seems like a red flag to me. 

The fact that you've "put over 5 offers on houses since February" and moved to a different strategy is a huge red flag for me.

I keep thinking about tools that can help me reduce risk by catching errors or red flags in seller disclosures and inspection docs, but that's likely because I've had a bad experiences with both.A simple and obvious example is a seller checking "No" for pests section, such as Scorpions and Snakes in Arizona when the property is in the desert, so obviously, there will be snakes and scorpions. 

Recognizing red flags early are key to staying profitable.