Then of course if you do lock down a deal you've got to have a crew you trust and you have to understand what's going on enough to recognize any red flags the crews/pm may present.

There is likely a mix of demographic and cost / growth problems going on.2) Be very careful about regulation (particularly in zoning).

However if there any red flags or things come up, he does not know what he should look out for?

In Long Beach in particular I've heard of many investors adding ADUs to properties that are already 4 units which is totally allowed but what I've heard from some appraisers and other lenders is that these will continued to be valued on the sales comps approach according to whatever the property is ZONED for. 

However, having a low credit score is a red flag to lenders.

And which areas are war zones, if you don't mind sharing?  

In a larger metro it is what would be described as a war zone.

The Commercial Tenant known asThe Snoop Shop ( pottery classes for children B-day parties), continued to rent until Re-Zoning was issued.Area filled with Multi-Family and Single family.Was in Flood Plain.

Since initial build, the zoning has since changed to high density residential which does not allow manufactured home parks.

- current owner owned less than 2yr , they said selling to buy other property (red flag?)