The big red flag is the tenants.

any mixed use building owners have tenants calling the town part time ceo to be vindictive and getting red stop work tag?

Rental rates are comparable to houses of similar square footage in my area.

As most litigation lawyers collect a cut, something like 33%,, they'll be happy with a $1 millions payday.We're also litigants in a negligence case, my wife's sister was killed by a major oil company truck running a red light, acknowledged y the truckdriver.

I've had about 6 inspections from various professionals done; the only one I'm waiting on still is the Independent Appraiser's report, but he's indicated to me that not only is the property a 2 BR, 1 BA, but also that he's planning on reducing the square footage GLA of the house by 30% due to non-permitted addition in back.

The big red flag is the tenants.

Wow, as if cost per square foot and land weren't expensive enough. 

I don't know rent control laws well in your area but I know in other areas the rent control is typically based off of numbers of rooms or square footage. 

If they change the subject or don't want to talk about it, that's a red flag. 

When I'm searching my local MLS for my clients, a really simple one to look for is houses that have total square footage much larger than their heated square footage.