Atleast 1 of 2 things would set off red flags1.

I would love to hear from current franchise owners, be it HomeVestors, Red Barn, New Again Homes, Flip Cheap Homes, or any other flipping/wholesaling franchises out there.

If it's wide open, that should be a red flag.

I'm not sure yet if he was on that lease or not.Definitely some red flags here for me.

I'm in Redding, CA, and we have a lot of demand for homes under $450k, and rentals.

Do you know if there is a lot of red tape which makes it difficult or is it fairly easy if you meet requirements and lender knows what to do? 

In retrospect, some yellow flags found by the property manager during the tenant screening are now bright red flashing sirens, but the tenant showed decent credit, had a positive previous landlord reference, wrote a charming cover letter in his application, and applied through the referral of a reputable real estate agent.

That seems weird to me and would raise red flags for auditors and I want to persue this in the best knowledgeable way possible.  

With a Red Lobster at 6.55 rate in 10 years with increases you would be right at an 8 cap.

I would also ask all contractors about how their draw process works (red flag is: 1/3 up front, 1/3 at half way, and 1/3 at completion.