Using an option contract can cause issues with some lenders or servicers, but they are still accepted by most of them.One of the guidelines recently published by Freddie Mac which is used by servicers to evaluate a potential short sale advises the use of option contracts as a red flag becuase it smells real estate investor.I like option contracts myself, but they are not widely accepted by Brokers, REALTORS and MLS associations.

Which brings up anouther risk consideration, dispersion of contingent liabilities, if one tenant has a large fire in one unit, the whole complex could be closed and red tagged, not only might you lose income from one unit, it's possible to lose the income from the entire complex.

What are the most common red flags you run into from motivated sellers?

He always told me that success favors the bold and boy was I bold.

It's from the MI Real Estate Laws and Rules, what we agents in Michigan fondly call our "little red book".

To many an LLC or INC after a business name is a red flag not to do business with that company - just my opinion here!

I drive by about every other evening to check on it when its vacant.Since you have already been burglarized, I would put up a fake camera with a flashing red light in plain site but out of reach and no trespassing signs and the HD alarm.

As a matter of fact in Minnesota the addendum reads in bold CAPS: THIS PAGE IS PART OF A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S)

If the property is scheduled for demo, disclose that to interested buyers, as city permits/red tape will be involved which takes time to clear up.

I've seen properties with tax records reflecting the same bed/bath count yet that same property had been red tagged for illegal additions.