He drew me a picture with little houses on each one it had how much we would buy them for, how much we would put into them, how much we could sell them for and he would circle in red what our profit would be and how it can add up.

What did you end up doing @Ryan W.I'm in a similar situation in Red Bank (oil tank risk) where I'm bidding on a SFH with no records on OPRA or NJDEP.  

3.Lastly, what are some big red flags (ones other than the obvious like water Dana he) I should keep an eye out for as I tour each prospective property.Thank you for the help in advance!

To that he answered: your best bet is to talk this through with the seller and try to come up with an arrangement so that he does it.This deal is in trouble and the legal due diligence is coping with a hard red flag:- On the one hand, my business instinct tells me to walk away because something smells shady and can have very bad consequences down the road.- On the other hand, this is a very good deal for the following reasons     - Very good area     - Good cashflow, even if we were to ignore the basement and only consider 3 unit

It was something like 68 cents a square foot.  

The creation of a true Right to Housing bumps squarely against issues of location and access.

That didn't cut it either.So...back to square one on the POF.  

If that puts you into the red, then I would suggest selling and buying something that cash flows at least a little after accounting for all property expenditures.

It's only a 7000 square foot lot though.

Most of the incorporation paper work is available online and if you are a DIY person you can take these templates, adjust some of the language and probably ask a friend in law school to take a look at a high level to make sure there are no red flags.