I can refer you to several if you email me.I am not giving you legal advice, but in my limited experience with this, anytime I see a conversion on a property and see there were no permits filed many, many red flags go off for me.  

We re-emphasize that too when they are ready to vacate.If a tenant doesn't want to do a final walk-through, it's a red flag.

So many red flags, I can't even count.

In my experience if there are more than 3 partners in the deal, it should be a syndication and not a partnership. if there is no PPM maybe they are trying to circumvent the SEC (Securities and Exchange Commission) securities rules and thats a red flag for me.As for equity in the deal, how does it break down in between the LPs an GPs? 

The FHA appraiser flagged the chipping paint and said the entire house had to be painted in order for the bank to lend the money.

If not, then you can renew with a different carrier and save.  

And if you tell them it will be used to buy an investment property would it set off any red flags for the lender?

That too should raise a red flag as this marketer takes no risk, simply collects a salesmanship fee for bringing a buyer to a seller. 

Way, way too many red flags on this, IMO. 5 hours away... 

Multiple reductions is a red-flag to buyers as is long DOM compared to comps.