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.  

Each hurricane red tagged about 50% of the houses on the beach and had to be rebuilt set back from the beach.  

This is a huge red flag. 

We had meetings with him about we our business finances are in the red, not making repairs unless its a non habititable issue or saftey concern.

Ok, try wearing a pro-Trump shirt or a carry a Trump 2024 flag in, oh, name your left "pillar of greatness"...... 

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

Investors also appreciate lenders who understand the nuances of rental properties and provide fast, reliable service without unnecessary red tape.

That was when all the red flags started coming.

On the other hand if they are a sponsor that is experienced in stopping a skin in the game, that's a huge red flag for me.c) how open to scrutiny are they?

I'm trying to plan this out as well as possible to avoid any issues down the road.I've seen the stories where people run into issues meeting this requirement and get scrutiny from the IRS, to me it seems the two biggest red flags might be when they hire a property manager and also when they rarely go out to the property to work on it themselves, always relying on contractors.