Are there any red flags/additional information I should look for when assessing a tenant's bank statement?

Gut feeling is a tricky one because sometimes (at least for me) I have overlooked the shady contractor/broker/seller and instead look at the potential of the project, only to realize when something comes to bite you in the butt and you realize all of the red flags in hindsight. 

You could own the sheet rock, cabinets, fixtures, etc.

If they are not getting rent it is not cashflow positive...........tenants posting signs like that is a big red flag and the fact that you probably wont be able to get the tenants out of there until late this year or early next year would have been dealbreakers for me.

It was a flip house located between 75 and White Rock Lake, just north of the M Streets.

I have been trying to get one since April but the market is red hot and I had lost close bidding wars up until now.Our offer was accepted and on Friday, we had the inspection.

Sounds like you are living in a condo that is really old in age or was poorly and incorrectly renovated.It's common in older buildings to have thin sheet rock and also the insulation used in the walls had a lower value back then.Over time the insulation breaks down.If you can hear each other between the walls it is definitely not a person issue it is a building issue.Good luck on getting them to redo the walls and insulate to fix the problem.Your best bet is to move to a newer facility with proper sound deadening.If you moved to a town house on the end unit then you would only share one common wall.In an apartment you can have people below you,above you,beside you, and with poor sound control can be a nightmare for a tenant.No legal advice.

They know that most of these are looking for rock bottom prices and offer about half price from their listing price.

If a red-nosed reindeer can NOT get his/her nose to glow, or isn't strong enough to pull the sleigh, the hell with them.

I spent a week in Austin last year looking a properties all over Austin, Round Rock, Buda, Kyle, etc.