Looking at some properties around there and it seems to be the norm to have a cesspool in a few towns (WW, Coventry, NK/SK)Any immediate watchouts or gotchyas / red flags?

Two things stick out to me on this post - start at the beginning of this thread - definitely red flags were discussed two years prior.Second is it has been 90 days so I am curious if everyone got converted to equity and what has happened since ? 

Sure enough the new owner was not renting their newly acquired property.Since rents have sharply escalated over the last few years, a rental with too low rent is a red flag of possible fraud.I sold a property in 2014, for $30,000 over 10 years ago.

To me this is very market dependent and product dependent.. in our Market some developments that are red hot that Lennar owns they might only offer 5k on a 600k sale.

But there are also some real challenges, like dealing with lower tenant quality on average, the extra red tape, annual inspections, and the longer time it takes to get tenants placed compared to the open market.

Just from the little you wrote, it's pretty heavy on the red flags. 60 days on the market (depends where this is whether that is a lot or just fine, but definitely overpriced at this many days) plus no sold comps.

What’s the biggest red flag you watch for when vetting borrowers?

I just find that they aren't worth it because of all the edits you have to make on the spreadsheet to get the same result, and one of the softwares refused to allow Journal Entries which seemed like a huge red flag to me. 

Melissa DSCR loans are business purpose loans therefore there is much less documentation and red tape to deal with vs conventional financing.

Add in property manager, repairs/maintenance, CapEx, vacancy etc and you will be deep in the red.