The neighborhoods that a lot of these properties are in are concerned high risk neighborhoods( Red Light District).

Too many red flags incl age of home and interiors needing work plus large rehab cost. 

I know not all businesses have to be registered with the BBB, but the fact that they aren't was another red flag.

The only thing we need to do is to paint one bedroom (it's blood red) and fill the house. 

Also, seeing nice round numbers is always a red flag to me, it shows me that more research is needed.

The one red flag I think I see is that he is breaking his 24-month lease after 18 months.  

Once it is re-rented do a move out letter itemizing your costs and bill them, but don't expect much.We have a strong non-refundable holding deposit, and red flags should be going off as soon as they fail to hold up their end that early int he contract.

The fact that the realtor didn't understand basic Bay Area pricing strategy is a huge red flag.

No different the the medical opinion that says a bottle of red wine a day is good for you and another list that says that is bad for you......wait, maybe that is a glass of red wine :)A list is just as good as the next list that says something different.

One even told me that the government won't allow conventional loans of less than 50k because this causes a red flag with the closing costs being such a high percentage of the loan value.