Hopefully that helps offset your selling costs and you don't lose too much on this deal.Yes some of these indicators raise a red flag to an experienced flipper but I seemed to look over.

All prior references check out also, so only red flag right now is the credit score on this applicant.I do have other quality applicants without this issue, but these 2 individuals are willing to sign a long term lease where I have an impression they could be in the home for +4 years if things go well, which would be great savings on vacancy costs. 

All utilities would be under my name, proper insurance placed and I would change DMV and to the new address while we wait also, so I don’t see any red flags coming from this.. our current home is about 3 blocks away also and will become a rental when we are able to move, so insurance would be change to rental and place on new house as primary as soon as escrow closes?

The loan can be red flagged for talking to the appraiser about value. 

That's a red flag but it's also an invitation for negotiation. 

Just be careful you don't get flagged too many times or they'll suspend your account.- short term can work.

The 0.1% increase in food prices was driven by the “food-away-from-home” category, which rose 0.3%, as Americans continue to shift away from grocery stores and back towards restaurants for their meals.

Jesse, I have to point out one fact that gets overlooked: CA is HUGE. 1 in 8 Americans lives in CA.

Their lawyer is not willing to entertain any more changes at this point, also a bit of a red flag.

I had someone that was going to manage one  3200 square-foot house  house for me near six flags and sea world area in San Antonio Texas.