It will raise a red flag to the IRS if you take depreciation on the return because depreciation shouldn't be taken unless there is an asset.If you do as you say - take the depreciation on your schedule E - what happens to your partners. how will they end up taking the depreciation on their return. 

If I fly out there for 2-3 days what specifically are the red flags I’m looking for?

This will also flag properties that have recurring structural problems/high maintenance costs. 4) Verify the market rents in the area every way you can. 

The first red flag, the seller misrepresented the current tenant status saying she had two leases in place, when actually she had no leases in place.  

Even if you call your normal carrier, and they tell you they can cover you, I'd ask more questions and be sure they understand what you're doing with your property.

This post has been flagged and will be removed...

But if there are overwhelming red flags in your credit report/background check, then their guidelines may preclude them from lending to you.

There is definitely red flags with them claiming that you changed locks and then throwing the 4k to move in the mix.

Watch out for fine print that requires an additional fee at closing - this is a huge red flag.

IRS computers tag this as an audit flag, and IRS auditors frown upon it for several good reasons.