That's Property Management 101.If your PM didn't have this lined up and didn't make you aware of this limitation upfront, that's a red flag.

Many insurance policies also require re-development within two years, a near impossible timeline in a region with the coastal commission, perhaps only second to Manhattan in terms of permitting and red tape.

They give no official closing documents, just internal documents that I'm guessing are fraudulent. 170% profit in two years is a HUGE red flag🤯 

There are more serious red flags that come up during the screening process. 

The voters in Red States would never allow a national rent control.

Are there any unique considerations or red flags you look for compared to the traditional rental process?

As a college student landlord you may have interaction with parents & if they find you unprofessional that may raise red flags, but if you have your s**t together you can ease those concerns.I am a big fan of college rentals.

Affordable housing is RED-hot at this time, especially if it's decent 3br+ housing sub $2k.   

I instead look at it as a potential red flag.

Having developed a majority of my career in CA the regulations and red tape for construction and development are intense.