I did all my other due diligence like asking for paystubs, W2s, Tax returns, Employment verification, bank statements etc etc and did not see any red flags overall.

The red flags of managing from a distance and hiring a property manager are legitimate concerns that make it more challenging.

I want to give them the benefit of the doubt they are just struggling with staffing but now have seen some red flags that lead me to believe there might also be some type of deceit/fraud and possible financial trouble.

They were already $75 billion in the red (IIRC) and now this....Even with Federal money, the state is going to have to chip in a lot of $$$ and they just don't have it.e) I saw US Senators this am on TV promising to assist with aid to CA, but ONLY if CA changes it's policies towards, water acquisition and Forestry Mgmt.

Legitimate lenders may charge a small application fee (around $250) to verify you’re serious, but if someone’s asking for thousands with no real intention of closing, that’s a huge red flag.On a more positive note, there are creative financing approaches out there.

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?

The fact that their documentation is not clear and they are in a hurry to move is a big red flag.

Verify employment and call previous landlords to avoid tenants with red flags.Rent Setting: Research comparable rentals in your neighborhood to ensure your rent is competitive.Use Technology: RentRedi is a great choice.

Donating money to large (FEMA, Red Cross), local organizations or Go Fund Me pages would be the quickest way.

I don't really want to invest in a D-class area.Tangentially, what are some of your "it's time to sell this property" red lines when it comes to the changing economic conditions of an area?