But if your rent is $1200 or below your rent will be rock steady or go up in a downturn.....WHY?  

update.my 3 unit cash out was cancelled by quicken loans. i give them no stars.90 days and $500 later to tell me they dont accept reserve money in dba account. i needed 2 months in personal savings. this after 10 other stupid red tape bait switch tactics. and 3 different loan officers all with varying degrees of knowledge.

WP is red hot right now. 

So things that are red flag for me may be fine for someone more aggressive.1) Portfolio matching: (takes 30 seconds per deal)a) Have an educated opinion on where you think we are in the real estate cycles (financial and physical market cycles)b) Then only then pick the strategies, capital stack, and specialized asset subclasses that make sense for that opinion.

To me that's a huge red flag. 

Don't rock the boat with a good tenant. just keep going.

I see red flags with this issue and should probably just deny them, but I wanted to get your feedback before saying no.

Sounds like the key for a developer or investor is if all the red tape is worth the upside/risk factors?

Is this a red flag to back out?

speaking of fires you can probably find some decent small multi up in Lake county or up I 5 towards Colusa Willows those areas into REdding..