The huge repair was definitely a red flag that made us worried for the rest of the house, but after the inspection we brought in a few other experts (structural engineer, masonry contractor) who gave us some encouraging assessments.We ended up getting another $5k off and are going to move forward.

These are items that may boost your score some, but are red flags for financial character (potentially). 

When you're looking for a property, what are some easily recognizable red flags you look for? 

I see two glaring red flags, both around the same issue  -- How are you selecting tenants? 

Our fixed costs for an application is around $45.. and we are willing to absorb this cost for an application.I've heard horror stores about a lot of up front fees..and my recommendations is to never pay them.....Its a Red Flag..

When somebody says they just got a wad of cash from a lawsuit then that tidbit alone would immediately trigger a red flag for me .

Make sure you clarify what type of assistance animal you could be dealing with.If your tenant says they have a service animal rabbit (not possible, notice wording) then that is a red flag.

Accordingly, your commissions will always be reported under your personal SSN, and moving it into an S-corp will create some complications, aka red flags.3.

Further, I would want to report any income (whether I call it "rent" or something else) that I earn from the roommates on my tax return, and I wouldn't want that to raise a red flag either. 

central valley up to Lake co.. look between Redding and Woodland etc etc there are plenty of places you can buy that will cash flow.. without going all the way across the country.. you could look at student rentals.. you could do air bnb in a place like Portola  Greagle  plenty of places to buy in CA.