For example, often fire damage is water damage--they put the red stuff out with wet stuff.

There is no incentive for the PM to contest work orders when they get to keep a percentage of the repair cost charged to owners.As an entrepreneur, I am allergic to seeing red on the P&L.

Many agents have a list of inspectors they work with, but the fact this agent is strongly asking should be a red flag.

To piggyback on what a couple of other posters mentioned.....you're doing a lot of "interviewing" and you may be sending up some red flags. 

We recently renovated a house that had been red tagged by the City.

Any red flags I need to look for?

The market is red hot and inventory is at an all-time low.

For a particular system, based on number of items, type of distress, and condition, you will get a red, yellow, or green, or in more sophisticated software, like all different shades of these colors.  

It might not be the setup that I would choose given the option, but I also don't view it as an immediate red flag.

put it all on red!