Does not look very likely as he came across as a nice gentleman and could not find any red flags so far on his company etc.Was reading Brendon's new book on managing rental which I received few days back and the chapter of contractors forced me to do my due diligence and hence this post ;)

My sister currently lives in the high priced market of Orange County and is looking to buy a home in Redding, CA where I am located at.  

Commercial vacancy is quite high downtown Nanaimo as most of the businesses have clustered in the North end (although the city has a mandate to reverse this trend and has enacted no DCCs downtown, etc...)A recent zoning change makes it possible to 'develop' a suitable SFR property to generating a 10-20% cash on cash return.

Since your interest lies in wholesaling, I added the below links to help with the success of your chosen niche.https://www.biggerpockets.com/renewsblog/2015/01/31/ultimate-beginners-guide-real-estate-wholesaling-2/ (Ultimate beginners guide to wholesaling)https://www.biggerpockets.com/renewsblog/2015/10/15/bp-podcast-144-getting-out-of-your-comfort-zone-and-kicking-butt-at-real-estate-with-danny-johnson/ (wholesaling tips)https://www.biggerpockets.com/renewsblog/2014/10/09/getting-started-real-estate-wholesaler/ (BP Podcast 091 Wholesaling)https://www.biggerpockets.com/renewsblog/2013/10/31/wholesaling-podcast-mike-nelson/ (BP Podcast 042 - wholesaling)https://www.biggerpockets.com/renewsblog/2013/08/15/wholesaling-business-lamar-cannon/ (BP Podcast 031 - wholesaling)To be more successful, you simply have to work on the other elements to progress your REI pursuit.

Stop into your local zoning office and have a 15 minute chat with them.

That's red flag number 1.

It looks to me as if you're a person that is very uncomfortable to get out of his comfort zone and likes to do things they way they've always been done.

You would have to determine a probability on your ability to sublet.Also, if it is zoned as a commercial property, you may want to speak with the local municipality to make sure you can you can do what you'd like with the property.Lastly, I think it is a bit of red flag that it's been sitting on the MLS for 3+ months and it hasn't been scooped up.

Comps, zoning, lender requirements, etc.  

First, check your local flood maps, as I have found that the proposed new map in my area removes me from the flood zone, although doesn't help until it becomes effective.