They have quite a few red flags to be honest.

Way too many red flags and hoops to jump through...you someone on the NPO to approve of your renovations, you need a contractor who is familiar with the historical district requirements, and you need a friend out here to push it through the NPO (if it gets approved).Not to mention the stringent requirements of renovating a house in the historical district, you even need particular building materials to work with.Even if you live here, I've seen a project turn bad very quickly in Fairmount when a contractor made an addition too large.For an out of state investor, this could very quickly turn into a nightmare.

If you plan to fill out a Schedule E on your tax return, HIGHLY recommend running income & expenses for the rental units through a business bank account.Mixing personal & business funds is a "great" way to get flagged for an IRS audit.Encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

It feels a little wreckless that BP doesn't flag this info as 5 YEARS OLD.5 years ago, flippers didn't do direct mail.

Is this a red flag or proceed?

A major flag to look for would be up front fees.

Nothing is screaming red flags, and everything says that the future of Winston-Salem is very bright. 

If the “relative” meets your requirements and is willing to co-sign the lease that may be a different story, but still a red flag for me.

Normally I recommend someone to get a long tape measure or roller wheel, flags and cones and lay out on the ground. 

I should have seen the red flags as far as Lee is concerned, and I am really bummed that I can't get started as quickly as I had wanted.