I don't think they offer that...maybe through an agency with another carrier?

I would say if those are the true numbers, the place would have sold instantly already.Purchase of $179k and rehab of $150k to get a value of $735k is almost unheard of.Main red flag is that something else major is wrong with the property.  

Any red flags to watch for when structuring these deals?

It will probably get flagged and taken down here

I don't wave a red flag in front of the lender daring them to call the note.

Is this a red flag to banks for getting approved?

As far as home office no longer being an IRS "red flag" I guaranty that if you put a home office deduction on a personal return on Turbo Tax it will move their audit risk needle.

Selling a primary residence and then buying it back as part of a 1031 exchange could raise red flags with the IRS.Your parents have a valuable opportunity to defer a significant amount of taxes by utilizing the $500,000 exclusion on their primary residence.

Specifically, the sponsor, Nelson Brothers Professional Real Estate (NBPRE), and later Nelson Partners Student Housing, NB Private Capital (NBPC), Versity, Versity Invest, Versity Investments, and Crew Enterprises (constant rebranding/renaming to hide past issues) had yellow/red flags about them before I invested in 2017.

I am thinking this is not only a red flag, but wondering how someone with the bankruptcy would have a 685-credit score.