The county tax assessor website says the taxes are up to date and does not flag the property as being in foreclosure.  

When the property sold, you should have contacted your insurance carrier to cancel the hazard insurance policy.  

It MAY get flagged under those circumstances.

While I was reading and saw that it needs plumbing/electrical/and a medium to large renovation on 1400sqft my mind went to approx $70k for rehab based on my previous deals; seeing your $20k number raises a big red flag.

I got quotes from other lenders using the apprasial my lender ordered and supporting documents and they didnt use the lot as part of the acquistion cost so that raised a red flag for me that my lender may not have structured my loan right.

I am wondering if this was random or there was a red flag on your return?

The red flag here is that they are asking for discounted rent, so you need to dig deeper and find out what's really going on if you want to keep the tenant.

What I like about them vs other carriers is you always get a 12 month policy but only pay for the amount of time you need to be covered.

I would be using the guest house property probably on weekends, while renting out the major house full time.Beyond it being legal, I want to know if this is a flag for the IRS.

I am working wiht the realtor, so will have to pay commission 5% on that deal too. as I understand, the closing costs will be a lot less than with the regular sale, and taxes will be spaced out over years vs all at once.One the balloon period expires, they have to refinance (so I get my all money back) or extend it.What are the red flags I need to be aware about owner financing?