Yeah the lateness thing is a HUGE red flag to me.
The nap thing wouldn't even phase me...from day one he would just simply be napping at 1 with everyone else and he would adjust (and might even sleep better at night as a result). Nothing else was a major red flag to me, either...but that flippant admission of frequent lateness would bother the crap out of me.
And I have trouble with punctuality, myself. (Have I ever mentioned that the bestest part of working at home is that it's impossible to be late for work
)