In my experience dealing with 1,000's of tenants & even 1,000's of potential investors the fact that you know he drives a BMW is a huge red flag.

In regards to closing costs, I should have said "closing costs & prepaids" - but either way this is money I have paid out of pocket already for my single family primary residence, and money I will have to pay out of pocket when purchasing the multi.The root of what I am trying to accomplish is trying to use the capital I have "stuck" in my single family I.L.O saving and waiting or using another creative financing avenue.

I took the chart that you put, and circled in RED, the many real estate cycles that I saw.

The blue and red real glossy stuff, again from my distributor is for only hot and cold applications not for heating and has no additional barriers.

That's a red flag.Let the buyer do whatever they want but YOU should use an attorney or an agent and protect yourself.

I am from Paterson, i don't want to invest here but worst case i might if I can get it cheap/ now i know the supply is limited i understand that but i wouldn't want to overpay for a property cause you will be in the red already. cash flow is more important to me, i will form an LLC when buying the property. with high taxes will buying a property here to house hack make sense still?

“Red tagged” as a hazard.

Any red flags?

I think this will be a big pro for her knowing that the capital gains will be minimized over the course of the loan and not passed on to her daughter after she passes.If you think of any other red flags that a new investor may overlook - I am all ears. 

They tend to like to plant their roots as its hard to find SFH that will work with the program. 2) Get rid of the pet.3) Find somewhere else to live.Conclusion:  She decided to get rid of the pet.