The acreage is zoned for 10000sqft single family and duplex properties.

I own a small house also commercially zoned as a reataurant.

There were so many red flags on this "deal" that it should have burned your eyes.

It still has many good attributes, but I would not be buying here now.All of my properties are free of debt, and I'm well into the 7 figure profit zone, so its not all bad.

No zoning issues. 

It was originally a single family converted into a duplex (not zoned as a duplex).

@Parker Borofsky can shed more light on this.This is indeed a red-hot market and lately it's been common lately for sellers to ask buyers to waive appraisal contingencies, as properties are receiving multiple offers (sometimes more than 20) and getting bid up well over list price.  

@Ramsin Jacob anything that has downstream potential via zoning/entitlements but can cash flow today is exciting and will do you very well.

@Frank MoraUnless you have capital gains that you are looking to deploy in a qualified opportunity zone, and follow all the rules for a qualified opportunity zone, the benefits for you will be limited.

When an investor does the initial walk-through in a house, there are red flags that will pop up, and all you have to do is look around to spot them!