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.

Even red states with blue governors can be problematic.  

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

This is a huge red flag. 

If a buyer is coming down with a high-down payment and quickly making a large deposit into escrow fighting tooth and nail about proof of funds may be a red herring.Credibility is also a factor here.

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.  

Government is nailing real estate investorsto the wall in a bold move to control financial crimes.BOI is yet another Federal program, “Beneficial Ownership Information.”The BOI program, a key tool in the fight against financial crimes, requires every business to document it’s 'Beneficial Owners.’

Quote from @Jay Redding: Steve - We would be interested in taking a closer look at this. 

Check out Red Stick REIA, Westbank Real Estate Investors, Northshore REIA and NOREIA.

Right now we're in the red, which we figured.