The fact that the property manager leased it without collecting a deposit is a huge red flag when they are only placing a tenant. 

I made my decision based on the fact that a) $5800 for a 90-day program was something I couldn't afford; b) $5800 for a 90-day program seemed VERY fishy/scam-y/pyramid-y to me; c) after scouring the internet for information, reviews, etc about the program, I found literally ZERO bad or less than 5-star reviews about it which - to me - is a massive red flag; no program, product or service is perfect, and the fact that they are making themselves appear as such really gave me a bad feeling about the program.

And, if you want to really see how LPs feel in a non public environment, there’s an “LP only” forum on Left Field Investors that discussed “red flag” sponsors that investors won’t work with again. 

Even thought I've rarely seen items get flagged...it's still a risk. 

I’ll be out of state, which I know is a big red flag for many.Well below 1% minimum of Rent/Property ValueHoping to self-manage (Yes, another big red flag)Loss of capital gains exclusionMONTHLY SUMMARYRental Income $3,500Less ($3,440) Mortgage (2,900) HOA (390) Rent Ins (150)Less ($1,155) Property TaxTot Exp ($4,595)Rev: ( $1,095) !!

Catch all the red flags prior to submission cause once you submit a file that has uncaught red flags, that's when your process slows and lender's get nit-picky.From a lender, I want you to work fast, if I am hustling on my end to make it easy for their processor and underwriter then I expect fast work with an open line of communication and I want my rep at the lender to be able to fight for me or my clients should an obstacle arise - which they usually do.

Some counties and states do not publish criminal information so you have to go to every county to search.If there are any red flags, I will conduct a Google search of the individual's name and the city/state they've lived in according to their application and their credit report.

I’ll be out of state, which I know is a big red flag for many.Well below 1% minimum of Rent/Property ValueHoping to self-manage (Yes, another big red flag)Loss of capital gains exclusionMONTHLY SUMMARYRental Income $3,500Less ($3,440) Mortgage (2,900) HOA (390) Rent Ins (150)Less ($1,155) Property TaxTot Exp ($4,595)Rev: ( $1,095) !!

Drug charges aren't always a red flag for me, but aggravated assault with a deadly weapon absolutely is.

.- Neighborhoods to Avoid: Are there any areas that I should steer clear of due to high crime rates, low property values, or other red flags?