Anything else you see regarding the deal to be a red flag.

The appraisal generally looked good, except for one issue: the appraiser listed the property as a 3 bedroom, rather than a 4 bedroom, because he did not see a closet in the fourth bedroom and therefore characterized it as a den.

The only thing I saw that was kind of a red flag to me was the use of "virtual assistants".

And I don't think you have an obligation to report abuse, but that sure is a big enough red flag as grounds for disqualification!

They will want 3 months bank statement and if the money shows up in the third statement thats a red flag.

Owed utility bills is a red flag on the background because if they owe they cannot get service in some cases.

We applied for the certificate of occupancy and got flagged in nearly every single room for the WINDOW SILL/SASH with the following code violation:The interior was found to contain protective covered surfaces in a state of deterioration in excess of more than ten percent of the identified building component with a small surface area. 

This would probably raise a red flag since I will not agree to lose money and get fired at the end.2.

Question:  How long before the exchange would this need to be done to avoid raising any IRS red flags?

I read and re-read all of them.I ended up not going through with this purchase because there were significant red flags by the seller.