This second property has a good block shell and has passed inspections with no major red flags. 

@Dan Handford has a great article about the red flags to consider before investing passively in any opportunity

Its a virus not unlike Covid right now in our industry with advance scheme fake lenders taking advantage of those that dont understand how HML works.If your an American Greed fan  find the episode on Remington Financial and INgrid Robinson.. its an eye opener. or just google Ingrid and advance fee schemes she has a website dedicated to it.. 

So you would have to go through the trouble/expense of finding a new renter, charge the old renter for the days occupied, and you'll lose the discounted rent you gave in the first place.If renters want to pay up front, it's a red flag.

Anytime I hear a party in a transaction is requiring a specific title agent issue the policy a red flag goes up.The responsibility of a title insurance agent is generally very different than that of auto agent or homeowner's insurance agent. 

I recommend more often when you have a problematic tenant that gets behind on rent, violates the lease, has complaints from neighbors, or other red flags.

Huge red flag.

I don't see anything in the pictures that raised any flags that would cause the home not to go FHA.

Red flag!

I am not sure how those work and wanted to see what the potential options are.The owner had offered the property for sale with a quitclaim deed (red flag for me) at a hugely discounted price, but obviously the IRS lien falls on me in this scenario.