I am looking at a duplex right now in this area (circled in red below). 

Yeah, I have been keeping a close eye on the Fort Collins, Laporte, Wellington areas and the market is red hot.  

I live in Red Bank NJ and invest all over NJ - Bergen, Essex, Hudson, Hunterdon, Middlesex, Morris, Somerset, Passaic, Sussex, Union & Warren County.

And "Built in 1950" with "Section 8 tenants in place" would be a red flag for me.

I guess my question is, does any of this raise a red flag for you?

If they are servicing the loan themselves, it is a red flag unless they are licensed to do so or have a TON of experience.  

Red button.

If you did then the sellers probably have issues they aren't telling you about.If you didn't tell them what your plans were I could see them being concerned and if I thought I was selling it to a legit buyer (and I didn't know what wholesaling was) and I saw that "able to assign" in the contract that would throw up red flags for me as well as a seller.

The returns he is promising are a red flag.

Just a reminder...DAREI meets next Wednesday evening, 6:00 pm at Red and JerrysThis month's topic is "Finding Off-Market Deals"Come and network with fellow Denver investors.http://DAREI.club