Looks like hot and cold (blue and red valve knobs on the left side of the manifold.)Can't see it clearly but it the other one may be a pressure guage on a valve.

I asked both of them how much they charge (which is the same) and the realtor that flips gave us a descriptive detail on why, while the other did not (raised a red flag to me) Now they both are assuming that we are going to use them... 

Though I have no idea what @Jonathan Bowen means when he says "I never identify as a victim" Maybe a bit of a Straw Man or a Red Hearing fallacy?

It's a fabulous place :) The closest I've been to Fishtail is Red Lodge.

Is this a red flag or just a small hassle to handle?

Wouldn't have been so bad if there wasn't a large, obvious triangular patch of dead red grass where he was opening the door and peeing. 

Even if it is there for two months they may require you to get a letter stating it was a gift and then you may have to deal with tax consequences of it since the Feds will see the deposit and it wil red flag it

There seems to be red flags all over the place and I will not enter in the actual contract or send any DD money until/unless this is resolved but since this my first time land-lording & buying a property I am here to find out what I can do while I am still able to negotiate a few things.

Huge red flag.

Are you currently investing in Redding?