Builders like buying at this phase because the red tape is out of the way, and they can save a couple bucks by hiring the infrastructure contractors directly.

You say its a start up business so that has a few red flags to me on your part.

I once had a perspective tenant apply looking professional and nice, while on social media we could see what type of lifestyle he led (non stop partying and drugs)   You need to be careful why you say no, but finding red flags can sure help narrow down the search. 

I noticed the seller provided documentation that none of the units put down a security deposit so that raised some red flags.

I'm certainly no expert with flips (yet) - I focused more on buy-and-hold multifamilies, but nothing in your report raises any major red flags.

Red Flag #1. 

What do you consider the "right" answers and what do you consider "red flags"?

I’d run like a bat out of hell from a lagoon or a water treatment plant , though.Again, it is best to get some input from an experienced operator but consider this:  if a newbie who has just been reading books and listening to podcasts can pinpoint red flags, you know that’s a deal to run from.  

Hi BP Fam!Can anyone please share some insight as to some specific items to look out for in hard money loan agreements and insurance policies for a fix and flip? What clauses should be included? or which clauses shoul...

A previous potential buyer may well have gotten estimates and shared those costs with the Realtor during negotiations.Underground tanks have to be disclosed and can be a red flag.