I instead look at it as a potential red flag.

Once you are familiar with what a good investment looks like, then you can create a rule of thumb to help you analyze property faster and only dig deep on the ones that look promising.Here's a guide that describes what good cash flow looks like and how to analyze a property.https://www.biggerpockets.com/blog/rental-property-cash-flow...

I would use the funds to buy at deep discounts (60-70% LTV) and then wrap with seller financing.

FD came and red tagged the outlet.

I’m surprised that in itself isn’t viewed as a red flag. 

I did all my other due diligence like asking for paystubs, W2s, Tax returns, Employment verification, bank statements etc etc and did not see any red flags overall.

That's aside from a renter placement fee (from a property manager or real estate broker), so with that into account, it could be about $3000 into the red on year one of a rental lease.

I mean you take most mid western or deep south cities and over 50% of the SFRs are rentals. were as on the coasts maybe 10% of sfrs are rentals there is a reason.

I also didn’t deep dive into each listing as I wrote this and just simply found examples of photos I thought fit this and Airbnb did as well.

This means a deep dive into your Internal Rate of Return ((IRR).