Many insurance policies also require re-development within two years, a near impossible timeline in a region with the coastal commission, perhaps only second to Manhattan in terms of permitting and red tape.

The fact they ask you to do this is not only a red flag for obvious reasons, but also because, they should know better how risky this is for you and if they had true good intentions they would have understood that and not offer you that option.What you can do is tell them..

Turning your little green houses in to large red hotels.

You will always get more money listing it but sometimes it takes a bit longer wind has a little more red tape.

JC’s lenient approach is definitely a draw for investors looking to avoid the red tape that’s becoming more common in larger cities.

That's Property Management 101.If your PM didn't have this lined up and didn't make you aware of this limitation upfront, that's a red flag.

The voters in Red States would never allow a national rent control.

I instead look at it as a potential red flag.

Affordable housing is RED-hot at this time, especially if it's decent 3br+ housing sub $2k.   

As a college student landlord you may have interaction with parents & if they find you unprofessional that may raise red flags, but if you have your s**t together you can ease those concerns.I am a big fan of college rentals.