It does need to show intent to hold the property as an investment- this may look more like a flip and get it flagged. 

Owner of house passed away last year and the reverse mortgage is defaulted and equity is in the red -$7,477. 

Those were all 1128 sq ft 2/1.5 at $1450.One was rented at 555 Red Tail Way.

I think you'd be better off using your Seattle salary to plant a flag in Charlotte. 

@Chris Low just noticed you're from Redding, I'm a neighbor having grown up in Chico.

Is this a red flag?

Notice that New York is the only city that is in the red in terms of appreciation from January 2016 - August 2016.

Here are a few numbers on the house:Purchase Price: $301,000Remaining Loan Balance:  $285,000Improvements: $30,000Improved Home Value: $340,000Rental Income: ~$2,700/month for both unitsP&I: $1390/month ($450 principal, $940 interest)Taxes: $340/monthInsurance: $310/monthRepairs and Maintenance: $135/monthCapEx:  $135/monthPMI: $205/monthProjected Appreciation: 1-2% per yearYou'll notice I have not included the cost of a property manager in the numbers above as this would put me in the red every month.  

@Spencer Hsu neighborhoods can be distinguished by economics and crime(Trulia Green - Red).  

They make things into red hot MOLTEN STEEL!