IMO a bigger red flag would be poor record keeping on expenses and other documentation that would indicate property condition.Anyway, you're ultimately purchasing the income stream that *you* can achieve, not what the seller achieved.

But, the situation you spelled out raises a lot of red flags. 

That would be a red flag for me personally.

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

What red flags should I be aware of?

If I were going to do anything, I would have shut down the entire thread.You had so many red dots your profile looked like a Lite Brite 😂😂 sorry, mod humor.

A sure sign of a dead beat customer is them NOT wanting to pay the deposit , it is a big red flag that they dont have the operating capitol . 

We have opted for a hybrid approach - LPs who want to pay for access can get an exclusive network, privately discuss operators, privately review and see other LP reviews of sponsors, and discuss "red flag" sponsors. 

The advantage, however, lies in the flexibility—no income verification, minimal red tape, and more lenient underwriting.

That's a red flag that your new PM doesn't know what they are doing.