The property has a small single family house but is zone for multifamily.  

Either way check into the zoning on the lot as well as get with your local building department to determine if it is even possible.

Getting David to divert one red cent would be more amazing. 

@Sally Red flipping is fun, stressful, risky, and you need to know what you are doing or you can "loose the house" so to speak.

I have looked up the phila zoning code packet, but it really has limited info.

But I'm also very new to this and I don't know what I don't know...so I'd love to know what others see as red flags or in which ways you've been lured into a bad deal.

I would talk to your local zoning or planning department, they will be able to tell you if you can do that.

I have been looking at AirDNA and reading up on Long Beach Zoning and Ordinance laws.

I've spoken with attorneys and architects about rezoning and all are extremely positive since the property is surrounded by commercial and office zoning and this parcel has been a long time coming.  

All the areas around here with those house are either war zones or C- / D neighborhoods.