Red lights in windows I like that idea Chris!

It pains me to hear these painful red flags in your description.1.

If they say yes they try to figure out what the seller could pay for rent and if it would work.The investor buys for cash at the courthouse steps and doesn't have the red tape with the short sale about letting the former owner stay in the home or renting to them.Another option in the future is if the investor on the loan is making all these demands for a promissory note or other contribution and the seller will not budge is for the cash investor to buy the note themselves.

Even the top economist at the University of Colorado Colorado Springs stated numerous times from 2006 to 2008 that the recession would not be significant or even experienced in Colorado.During the up market times, all is perceived as good and the red flags are ignored.

It would be easy to spot contractors who pay for false reviews because those people who give a false or paid review would most likely brand new to BiggerPockets, giving us a big red flag.

Sometimes I use a red pen, sometimes a blue pen, sometimes a purple or green one.

Regardless of legality, agents, DAs/AGs, title companies, escrow companies, and your end buyer's lenders are all on the look out for anything that raises a red flag.

But there are plenty of red flags that you highlighted, and this isn't for everyone.

Down payment @ 20%: $37,000Loan Amount: $148,000, 30 years at 6.00% (estimating here)PI: $887.33/monthGross Monthly Rent: $1,700/month (more realistic estimate)According to the 50% rule, I'm still slightly in the red here.ExpensesTaxes: $2,119/year = $176.58/monthInsurance: $700/year = $58.33/monthVacancy: 8.74% (according to www.bestplaces.net, as of June, 2012) = $148.58/month - I think this is a bit high, as these units seem to have very little trouble getting occupied.Groundskeeping: $500 = $41.66/monthAdvertising (Craigslist, Internet, For Rent signs): $100 = $8.33/monthMaintenance/Miscellaneous: $1,000 = $83.33/monthTotal Annual Expenses (including vacancy loss): $6,202.00 = $516.83/monthNet Operating Income: $12,999/year = $1,083.25/monthLess Annual Debt Service: $10,647.96/year = $887.33/monthCashflow Before Taxes: $2,351.04/year = $195.92/monthALMOST meets the minimum of $100/door per month!!

Looking for properties I came across a condo for an extremely low price. upon further investigation many condos in the same complex are for sale for very cheap. big red flag for me but the price made me go look at it.The condos on the inside are either very nice or can easily be made very nice.