While I didn't like feeling I was in Time Square on the Canadian side of Niagara Falls, the New York side felt completely dead. 

We are in the woods where we really wanted to create another sort of living space outside of the square footage of the home. 

Up front fees (outside of appraisal fees) are typically a red flag when dealing with a HML.

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.

Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?

I don't really want to invest in a D-class area.Tangentially, what are some of your "it's time to sell this property" red lines when it comes to the changing economic conditions of an area? 

Than did all the red-tape fun to get things set, and completed soil corrections. 

They give no official closing documents, just internal documents that I'm guessing are fraudulent. 170% profit in two years is a HUGE red flag🤯 

small homes don't work. we build a stacked triplex much more affordably. density is key and vertical is the key. use that land cost and fixed costs more efficiently. everything we build for apartments is less than 700 square feet and only 2 beds and all 3 story walk ups and all triplexes. by building codes 4 family is commercial and also becomes cost prohibitive.

I will keep this front of mind going into future conversations and negotiations though incase it raises other red flags!