Thank you that was it! It finally works haha 
I’m also working on getting the material working with lots of different sprites that are part of many flipbook animations. So I created a spritesheet for the character animations and the red and green only pants and pant outline that match the character animations on the other spritesheet.
Any idea of what I should do now to get it so the colors work with sprites now? Because I know I can always input a source texture on the sprite, but I’m not able to input the pants texture that matches the sprite.