Major red flags here....

We started a business and it has really stretched us thin until we get out of the red.

That's not a bad neighborhood at all, although being right on Red Bridge is probably the least desirable part of the neighborhood.  

When they show up late, don't make eye contact, don't shake hands, accept the place without seeing it, are ratty, smell of smoke or alcohol, begin telling me dramatic stories of current landlord troubles, mold and such or some other red flag - guess what?   

Hi Chi, the legal address vs. physical unit discrepancy is a big red flag.  

I dont hear from them for a while, then an hour or so later I get a call saying I got red-tagged by the city.

Too much inventory is a red flag. 

It's not a bad thing to mention when in front of the seller, that also provides a deeper level of honesty that they really appreciate.The insurance issue can raise a red flag as far as the lender is concerned, which is why we utilize the land trust when purchasing this way.

I'm located in Redding.

Nobody in college would ever go to that side of town because those who have gone there have been harassed, robbed, beaten, had their cars stolen at red lights, and have been held at gunpoint.