If that's nothing unusual and it won't raise red flags to IRS, it will work.

One of the hardest parts of being a real estate professional is properly correcting the expectations of sellers whose expectations can be way out of whack, they start to see red. 

It will raise a red flag that you're from VA and not using one though.

I am thinking that the zoning red tape would be difficult to revet the building back to a duplex.

A few red flags in the small amount of detail:#1 - showing up in a car with "all his stuff" - I know that people hit the skids and things get away from them, but someone wanting to make an impression would have handled this a little differently. #2 - leading with not paying rent - he's admitted he's skipped out on rent up front.

Finally, remember that by renovating units you’re not only increasing your monthly income, you’re also increasing the value of the property when it comes time to sell.Be bold, be strong, and thrive!

Planting Bougainvillea (red, purple, orange) along the drive. 

If they are doing select grade red oak, then you are doing select grade red oak.

Any red flags I should keep an eye out for? 

But if anything goes pear shaped, you'll be in the red.