@Bernardo Bento where can i find what is included in the rehabilitation zone? 

In HI there are leasehold properties, cesspools, water catchment, and Lava Zones (on the Big Island). 

And won’t parties involved see red flags waived by all this “out of space” subterfuge?  

At a minimum,  you should understand what the current zoning is and what restrictions there are.As the post above mentioned reaching out or going in person to speak with the planning and zoning department will be very helpful. 

what are some other major red flag questions you might ask?

Family or not it's giving big red flags. 

Most dscr lenders will not do loans under $100k but if the property is not in the usda eligibility zone, the same lender I quoted above will do loans under $100k. 

Quote from @Paul Novak: Quote from @Don Konipol: @paul @Paul Novak First congratulations on finding and sticking to what’s successful and comfortable for you.You can always ACCELERATE wealth creation; the question is do you want to take on more risk and or dwell outside your comfort zone in order to accelerate? 

New construction, townhome style or even small simple house style - coupled with nice neighborhood amenities, and in a good school zone 

This is a good way to see old photos, bedroom accounts, utilities, etc.. they may also be able to help u check if it's in a flood zone.