There is also the local knowledge of a market like here in Lake Tahoe where lending can be trickier so an offer with a local lender might get chosen because they have a reputation to get a deal done vs a national lender that can have more red tape and a slower process. 

Just make sure to document how you arrived at the land value in case of IRS inquiries.If you’re unsure or want to avoid any red flags, consider consulting a tax professional to ensure you’re compliant and optimizing your depreciation. 

Also remember the time these returns will take to amend along with the possibility of opening up audit periods/red flags with the IRS due to amendments.Doing this yourself on turbo tax likely won't be your best bet considering all of the details.

I think there is another case study of using federal land for affordable housing in DC that has been held up with red tape for decades.  

If he lived in the same place for four years, that should reflect on his credit score.I think you've found enough red flags to justify denying them.

@Jake Barrutia I personally see this as a huge red flag too.

Additionally, these investors can provide warnings about potential red flags, ensuring you hire reliable contractors and property managers.

A conventional loan may come in slightly cheaper, that's true, but the red tape on conventional mortgages is excessive to say the least.No Reporting on Personal Credit: DSCR loans are kept off your personal credit profile, which is perfect for keeping your personal and business credit separate.

that said the other issues are a red flag.  

I looked over the entire lease and the written notice of intent to move requirement was not underlined or bold either by the way.