If I remember correctly, East Coast Tax Auction LLC and Red Rock Capital were two of the high volume bidders.

I looked at a couple of deals of his a few years ago but they seemed like bad deals, red flags, so I passed. 

If they say 'no', that is immediate red flag and I will ignore that.Do legitimate and genuine private lenders go through 'Escrow' process ?

I haven't researched it much but I tend to see a fair amount of listings for this type of home and am just interested if there are any regulations, rules, red flags I should know about if I decide to pursue this niche.

This is a huge red flag to me, expecially as it appears the seller is also the property manager.

Yes this is a BIG RED FLAG!

He had a HUGE red flag warning and just kept motoring on and now is acting shocked the tenant continued to screw him over

Are there any red flags I should be aware of, such as the vacancy expense or NNN costs?

And I think this is where the Midwest starts to stand out from red-haired step child of past decades to looking pretty good now.

We just went through it with a property that had multiple large red stains.