After 20+ years in real estate partnerships, here's what actually puts you on the IRS radar (and what doesn't):REAL Red Flags That Matter:The Partner Complaint TriggerDisgruntled partner files Form 8082K-1 disputesPartnership disputes leading to tax filingsReal Impact: Instant IRS attentionSuspicious Loss ClaimsLosses exceeding investmentArtificial basis inflationSudden large losses without economic realityExample: $100K investment claiming $500K lossesRelated Party GamesCircular property flipsBelow-market transfersFamily partnership schemes without substanceWatch Out: IRC §267 and §707(b) violationsDebt Engineering Red FlagsBasis inflation schemesArtificial guarantee arrangementsPartner debt shifts near year-endCritical: IRC §752 compliance matters!

I was thinking this might work on my property in Redding and can be adapted to a shared housing project for seniors (though I'd want rooms large enough for bed, bath and seating area)  It's my understanding that it is considered a SFR with seperated bedrooms as far as planning.

Good or if there any red flags?

I had specifically asked for numbers including mortgage payments and they emailed to me.

A property manager not requiring this raises serious red flags.

Quote from @Zakiya Zaid: Thanks @Brenden Stadelman, I was just looking into Investor Edge this week, the $4K -$6K raised a red flag, but 100% financing is worth looking into. 

I recently had to replace my HVAC system because it was red-tagged.

I get where some people could do it in an odd way that throws off red flags.

The sponsor if they even consider allowing you would be a huge red flag for me knowing if they will accept non accredited investors what other rules are they breaking. 3.

Avoid any self-help eviction tactics like changing locks.Maintenance: As a landlord, you’re responsible for ensuring the property meets basic health and safety standards, including working plumbing, heating, and electrical systems.Inspections: While there are no mandatory inspections required before renting, your property should comply with building codes.