I called the State department of Health and they stated that mismanagement of the park from the absentee owner caused the park’s dysfunction. - 18 lots.  11 abandoned mobile homes.  7 empty lots.- A 3 BD/1.5 BA also resides on the property...which was used as a 2 BD/1 BA and office.- City water/sewer.  

Has anyone been sued by the Health Department? 

The owners are selling for health reasons.

And you have to worry about a special assessment absolutely wrecking you.Ran, just throwing some cold water at you here - on first blush, this looks like it is a very, very bad investment deal.ETA: this is not directed @Ran specifically, but it appears nobody on this threat has considered any expenses beyond mortgage. 

The loan would be 35% of my before tax income and roughly 60% of my after tax, health insurance, and retirement account.

Some of the debt is from credit cards with higher interest rates 19.99% - 22% (emergency health situation where we needed to live in another city for a while to help with a family member and at THAT time we didn't have our remote company set-up yet - so we were unable to work during that extended time).

So your strategy is not going to work. 3) You might qualify for partial exclusion(That might shelter your entire gain) if the reason for move is health, work, or unforeseen circumstances.

If it matters, I'm in otherwise good financial health (job/credit/etc), and while I would be using a significant amount of my savings, I would have enough to cover a handful of unforeseen expenses.

Apt G claims that she smelled cigarettes and it was so bad it was seeping into her apt and she has health problems.

As long as the asbestos is in the walls or encapsulated in the floor tiles there is no health risk.