When it comes to purchasing a property, being aware of potential red flags can help you make a more informed decision. Remember that just because a property has one or more of these red flags, it doesn't mean that it's automatically off the table. If you come across a property with any of the following red flags, it's important to discuss it with us before making an offer:

1. Small Square Footage: Lenders may not lend on properties that are under 500 square feet in living space.

2. Poor condition: Properties that are in poor condition, have visible damage or require significant repairs may be viewed as a riskier investment by lenders.

3. Environmental hazards: Lenders may not finance properties with environmental hazards like asbestos, mold, or lead paint, which can pose health risks to occupants and require costly remediation.

4. Zoning: If a property is not zoned only as residential, alternative or private lending may be needed.

5. Property type: Co-ops or student housing may be viewed as riskier investments due to their unique ownership structures or maintenance requirements.

6. Outdated Infrastructure: This can include outdated electrical wiring or plumbing, such as Kitec plumbing, Knob & Tube wiring, and Insulbrick.

7. Location: Properties located in rural areas may require a higher down payment to mitigate potential risks for the lender