As far as I can tell, this may be over capacity and is also a huge red flag. 

They are cheaper than red potatoes.  

Negative cash flow with high HOA fees is a red flag.

I believe that it will effect the rental market harder in blue states than red states due to the sanctuary city policies .

Turning your little green houses in to large red hotels.

If the property breaks even, or operates in the red currently, it will only operate deeper in the negative (unless you find a strong ROI like creating more bedrooms, convert a non living space to living space, etc) with another loan. 

Weeks later found another buyer, barely qualified, a pain to work with, does not respond half the time, red flags all over, seller is motivated.

That's not everyone - some legitimate players may just be short on cash because of projects (I've been there) - but it is a lot of people. 

In fact, on numerous occasions I've raised red flags concerning their representations, financial reporting and general investment decisions that were all verifiable through public information and should have given most investors pause before investing.

I think Collin is being a little tongue in cheek with the Boone's Farm comment.I work with a local, large wine store, wait for their semi-annual sales when they compound discounts and buy 2 cases of each (white & red) for the largest discount.Basically I'm setting out wine that retails for $11-12-13 that I have paid $7-8 a bottle.