They are looking to break their lease 3 months early (red flag) for a bigger space as they work opposite shifts and live in a small two bedroom. 

Anything above $1500 rent is cash flow so obviously, anything below $1500 is breakeven or loss.The market is red hot.

All it will likely do is confuse them and raise unnecessary red flags.

To me this is not a big concern because it is my plan to repipe after closing, then I will be able to show proof of the repipe and get the exclusion lifted.However, not being able to get insurance with FULL coverage due to the piping, I believe it would be a red flag for the lender and may be reason for a denial. 

When we get into the inside I see hairline cracks in the ceiling and on a few walls, big red flag.

Late rent is a red flag.

I would know that the tenant ignored many opportunities to work with me before it came to a red tag and they chose not to. 

And along with that, the tenants tend to think of the house as their house and paint the walls red and purple, whatever, remove flooring, remove kitchen cabinet doors, paint them, etc. 

I have two AirBNB listings, and frequently run into red tape.

His attorney also reviewed and no red flags arose.