Want to make sure we have good coverage and not missing any hidden red flags since we are out of state investors.

Sounds like a hard money lender that wants to take a property from you when you default.There's a lot of issues here starting with a guy that will loan you money and once it gets difficult wants you to abandon ship- red flag.There are a lot of unknowns here but trying to dump it seems like a 100% guarantee to lose money.

Setting aside what you say is drama there should be a number of red flats regardless.

Red flag to IRS if you try to deduct the taxes and insurance on the LLC tax return.

Given the above current owner is in the red every month $350 and is asking $475,000 for the park.If I am mistaken on any of these assumptions please let me know as my comments are based on these assumptions.From what I am seeing the seller is way out of whack with their asking price. 

This always screams red alert when they already can’t pay something 

Also, having the right connections with the local government can help get past through all the red tape.

It's not normal for developers to give a 50% discount it's actually a huge red flag.

Large bank or even a community bank, you still have to qualify, and there's always going to be a layer of red tape involved.  

FPE Stab-Lok breakers (red strip across the front, often says Stab-Lok somewhere on the panel) have a very high chance of not tripping when shorted or overloaded.