this allowed smaller players to investor with Rod and I we both had 2 to 3 million in cash into the group the other 10 or so maybe had 2 mil between them this allowed us a pretty strong entity.. 

If you go 100+ units you are competing with some LARGE players, but in the 12-60 unit range I don't think there are a TON of people looking and so I would say there is less competition there.

That 7 day due dillegence is a HUGE red flag.

The coastal proximity and HOA are both red flags. 

It was a full building with the owners occupying the whole upstairs (red flag) and signed a 1 year lease.

Definitely a red flag.

Last reserve study done 2007, and currently in the red $200k, and main reason for increase. 

While it's true that breaking even in a rental is someone else building your equity, a single unexpected maintenance issue immediately puts you into the red.

Whenever I hear “there aren’t any other homes likes it” or “unique home” that’s a big red flag to me.  

The market is red-hot right now because interest rates are at record lows if the economy changes in interest rates go up it will kill the housing market.