FD came and red tagged the outlet.

I did all my other due diligence like asking for paystubs, W2s, Tax returns, Employment verification, bank statements etc etc and did not see any red flags overall.

I’m surprised that in itself isn’t viewed as a red flag. 

She also saw the "scam" post and called me at work to tell me she would not be going after all and didn't want to waste her time. 

That's aside from a renter placement fee (from a property manager or real estate broker), so with that into account, it could be about $3000 into the red on year one of a rental lease.

Thecompany continues to advertise on Google with paid ads.Source: Google Ads for Norada Capital ( Link )Summary of Red Flags and Conclusion:This report is not intended to be an exhaustive account of every material misrepresentation and apparent securities violations, but it provides more than ample evidence to show the following critical issues:1.

Up front fees (outside of appraisal fees) are typically a red flag when dealing with a HML.

They give no official closing documents, just internal documents that I'm guessing are fraudulent. 170% profit in two years is a HUGE red flag🤯 

Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?

I don't really want to invest in a D-class area.Tangentially, what are some of your "it's time to sell this property" red lines when it comes to the changing economic conditions of an area?