Is this a big red flag?

My guess is that this property runs at least $600/month in the red each month.

Local banks are typically best as they won't have near the red tape and their underwriting criteria is a bit less strict.

Really, there is nothing more that you could've done to negotiate better...if there were no red flags with the buyer before them backing out.

I never received a notice or heard any word that the tenant fell which certainly raised red flags that him nor his wife ever mentioned falling on the property.. 

If they have three different jobs in the last two years, that's a red flag that they're unstable.There are exceptions.

@Edi MariUsually the red flags with lenders are when they ask for funds upfront (some HML will ask for ~$250 AT THE TIME of a site inspection which is normal).

That puts you ~$110 in the red each month.Even if you squeak out a bit of cash flow, what happens if there's a special assessment by the condo association and years of cash flow gets wiped out? 

Parts that tend to change with each new tenant are highlighted in red.

Does it have to do with the short sale and all the headaches/ red tape that comes with it?