Your potential tenant altered your property without permission The last two points are red flags in my book.

Thanks guys and yes the "to be built" gave me a red flag as to if this property is even the one on the actual location.

By evaluating like this you can red light green light very easily and create benchmarks to quickly eliminate the losers and see the winners rise to the top.  2.  

Hi,I came across this red-tagged property recently.

Do not accept, this is a major red flag.  

They give you a song and dance that it will take x dollars to make it rentable , when they have no intention of putting one red cent into the property, RTO it at 20 x or more of what they paid with a contract from you know where.

I'm a newbie myself, but @Dan Brewer 's post sounds like sage advice that I'd follow especially given what sounds to be red flag information; an 8yr old appraisal, really?

If I buy a 2 bedroom property during this period and make this my primary residency, can I have a roommate and charge them rent or will that raise any red flags?

As for a PM, try Red Door Property Management (http://www.reddoorrents.com/) - and tell them I sent you if possible.  

Also, there are a lot of red flags w/ someone willing to pay more and all in advance.