Is it to have a property up there that you can rent out and then have for yourself when you go to Red Rocks?

Those who make me think like Red here.... 

These are are always red flags but will often be overlooked by novice investors. 

any red flags etc to check for?

Now, there may be baseball and basketball (rooting for the Maloof family).

@Eve Favorse the first red flag was the nonrefundable EMD.Would not have even bothered making an offer with the condition.

A professional foundation inspection to determine root cause and verify the neighbor is at fault.

This is a fairly common issue with older properties  where root structures create a dislocation in the line causing constant backups and the only remedy is replacement.

While there are several reasons why you can be targeted for an IRS audit (including running for an office, it seems), the most common reason is the IRS computer finding enough "red flags" in your numbers. 

But for me, it is a big big red flag.