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

They had completely covered the outside wall with red brick and added a garage.

Basically if someone is offering to pay 12 months in advance there are a lot of red flags that go up. 

Other things that are red flags for me: Their bios don't even mention how long they've been managing other people's money. 

I recently had a conversation with my lender and mentioned I would be purchasing a property as my primary residence.  I would live there while fixing it up then renting it out in a year.  She cautioned I need to be ca...

Within the IRS technical audit guide they specifically highlight being several hundred miles away from the property as a potential red flag. 

Seems that way in the business of Land Flipping...which is a red flag in my eyes...maybe it's not a part of the real estate sector I need to get into. 

Quote from @George Red: I echo what @Jon K. said... if you're still interested after doing some additional due diligence, try starting with 1-3 as opposed to jumping into 10.

Great post - I have several inquiries for clients with the desire to own coastal STR's and just noticed the red tape is suffocating when I would dive into listed opportunities and feasibility with the municipalities. 

Many years ago, we had NPLs in NY and the bureacracy and red tape was staggering.