It would be a big red flag to me if they are doing a lot of volume in this market. https://www.biggerpockets.com/member-blogs/10145/83067-limited-partner-s-guide-to-investing-in-the-right-deal

The Short Term Rental Secrets Podcasts and Website by Mike Sjogren is pretty great for learning a ton and hearing from big players in the market that started from nothing.https://open.spotify.com/episo...https://www.strsecrets.com/abo...

Red flags all the way around. 

or perhaps a reverse build to suit where the data center operator controls the buildout and the planning etc.I've not been involved in a data center first hand but the central OH market is pretty data and warehouse heavy as far as developments go and to echo the posts here, the power requirements are wild, and the red tape to get that power to the site is often cumbersome. 

The fact is there are more money and guests than ever in the STR world and this is attracting bigger players who will crash existing hosts if they don't adapt to the new ecosystem. 

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

It is very unlikely that you'll have problems/be investigated for just one instance, but repeatedly doing this will absolutely raise red flags these days.

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

And if that's the situation with them...then it would be another immediate red flag for me (because I find these types of sponsors always have multiple things I can't stomach).Also there are other sponsors in their asset class that have better fees.

(Finance of America, Civic Financial, a few other players) They raised rates on there 30Y product about two weeks ago.