They have to have the US flag on it.

If you find proof that a plumber flagged this as a bigger issue, you could have a case that the seller was aware but didn't disclose it.Best of luck! 

Each have different ROIs and characterizations on "good" investing. 

Thanks for tagging me Joe.. if we are talking about Jackson MS  I owned about 200 section 8 houses there and agree with @James Wise no way no how is the characterizations in this post from the OP correct its the complete opposite thats why I own zero homes in jackson and would never very do section 8 or any rental for that matter there..

We were assigned 5 other properties (2 of the them we have paid the $600) and the other 3 are pending charges but today we started getting red flags.

My CPA has advised not making any moves until 2025 to avoid raising red flags ie cost seg, putting into service, and then selling all in the same year. 

Or is that a red flag?.

Are there any major red flags that I need to consider with this strategy? 

I would call the concerned parties and make sure you gather paper trail.. call the credit bureaus, they will give the advise you will need to get the flag removed

One, the mom and pop investor will waive their white flag and sell to a larger outfit.