How are you going to deduct mortgage interest, depreciation, property taxes, insurance, etc on the cottage tied to your primary home - without getting flagged for an IRS audit?

All was smooth until the last one, which had red flags I continued to run through.

Are there any red flags that immediately signal a deal might not be worth pursuing, even if the numbers seem solid?

They can signal red flags that might impact your property management.8.

A big red flag is their job at an apartment property managment company:- What is their job history in this industry?

If it did, I would go on linkedin and see what experience they had (for example that apple... company in TX had asset managers who were overseas VA's  - curious how many of those investors knew that and could have spotted a thirty second search would have created a red flag).5.

Start by noting the date of the furnace and air conditioning unit—old units may need to be replaced.Some mobile homes were not manufactured to have air conditioners, so it should be a big red flag if you see window air conditioner units.

Another option can be using a Hard Money Lender, a lot of times there is just less red tape involved.

However, this is what many real estate books call “phantom cash flow,” which is considered a red flag.

Changing things after you have already started the business throws up a bunch of red flags.