Recognizing red flags early are key to staying profitable.

And if that's the situation with them...then it would be another immediate red flag for me (because I find these types of sponsors always have multiple things I can't stomach).Also there are other sponsors in their asset class that have better fees.

If this were a brick and mortar bank (now I switched to one), this would have been flagged to me before the bank took the action of refunding the money, triggering an investigation.

Or do other investors see this as a red flag and would prefer to have current leases?

And, if they had issues in the far past, it can still be a red flag too.

Big red flag.

If they won't manage a property because of the neighborhood, then I know that is a red flag for me to avoid.4.

Looking at some properties around there and it seems to be the norm to have a cesspool in a few towns (WW, Coventry, NK/SK)Any immediate watchouts or gotchyas / red flags?

Thats a red flag.  

Here's what I've learned:Inspections Are Non-Negotiable: Always get a full inspection, but don’t stop there.Plumbing & Sewer: Have the plumbing and sewer systems checked specifically, as these are common problem areas in older homes.Electrical System: If the inspector flags any electrical concerns, bring in an electrician during the inspection phase for a detailed evaluation.