I'm not saying that's what was happening in this case, but I think you were wise to be suspicious.

There are way more things I'd have to know. 2% is phenomenal, but due to how rare 2% properties are these days, I'd be highly suspicious and assume it's in a bad area or in bad shape, of which I would not buy in.

As I was reading through the comments below a recent blog post, I came across one that looks suspicious.

The one advantage of direct sourcing is if you get a deal and it is not quite right for you there are other investors (like myself) that can offer you cash for the deal if it has been negotiated well.I'm always a little suspicious of the 'Hot List For Sale' ads.

Upfront fees that aren't for an appraisal or credit report is suspicious

Maybe you're getting a great deal, but I would be a little suspicious. 

Online research seems to show that it’s used to determine if I’m paying the correct amount in taxes and that if I ignore this it seems suspicious.

If I walk in and everything in the basement is brand spanking new, I might be suspicious.

It becomes a tortured conversation and makes the buyer more suspicious about everything else.

On that particular property I had a reason to suspect there was something suspicious between the tenant and the seller so I wanted to clarify exactly what the terms of their agreement was before I closed.