This level of "creativity" is a huge red flag.

If they are willing to wait 60-90 days and that is OK with them, then they should get an agent and get some local cleanup guys and handymen to get it sparkling and pretty.

Lot's of more red tape to get through because a project of that size will cause ripples into other areas so they scrutinize it heavily versus smaller projects that tend to fly under the radar.

Too many red flags (no SSL, P2P lending?

From a personal, self-interest standpoint I'd love to hear a little more about the red-tape that you had to work through to get going on the property.Congrats again and all the best!

There are several 'red flags' that most everyone will avoid when it comes to buying properties.

So taking the 50% rule you are looking at slightly positive cashflow if the 50% counts for Tax and insurance, if it doesn't it is in the red. 

While I understand many people do rent to those with poor credit, to me poor credit is a huge red flag and not worth the risk.  

And I agree with @Michael Noto.. not having the 2 bedrooms rented out because she requires 2 months down is a big red flag as to the type of tenants she's expecting to get in there.

They had "Red Flags" posted all over them.