Their guarantee to cover the mortgage if they don't rent the property is a red flag, too.

That extra cash flow isnt safety, its the market signaling with a big red flashing light, Risk.

Red Stick REI and The RING are the two big ones in the BR area.

Quote from @Bruce Woodruff: Quote from @Peter Mckernan:Up front (First Contact) Red Flags - 1) Everything should be in writing and very detailed 2) There should be a very specific Scope Of Work3) They should not ask for much upfront $$, certainly no more than 10% - if even that.

If you can't close fast enough or has too much red tape, then you lose the deal to others.

The 1st red flag question he went over made me laugh.

Bay Park / Clairemont / Carlsbad / Oceanside are all top-tier markets that fetch top dollar (see the Yellow & Red).Move your search slightly inland, or further down South and inland, in order to get something done for 1/2 the price, with similar rents (not quite as high, but definitely not 50% less like the purchase price would be)

I just paid my attorney 15k today in just fees for 4 entitlement contract red lines and we arnt even under contract yet!  

Ask how they intend to pay for a year or two of rent.I ask for a statement of assets and discuss any red flags or ambiguities with them.

@Chris Blackburn, while I can't speak to this specifically, there are a few red flags I see in your post.1: A Realtor has to be a member of the national association of realtors, an industry trade group primarily focused on your typical home buyer.