If you have never done due diligence hire someone that really gets it... buying the wrong park at the least will cost you cash flow, and might bankrupt you.

I dont know what my potential liability is if there is a large settlement ( does HOA have insurance themselves to cover most of it), what would happen if it bankrupted HOA?

If you let sob stories soften you, there is a high risk of getting burned and losing money or ending up bankrupt. 

The fact of the matter is: real estate is often a high-stakes endeavor, and the more advanced strategies (like BRRR'ing, wholesaling, flipping, out of state investing, etc.) can easily bankrupt a beginner when they're executed poorly.Now, having said all that, house hacking is not necessarily easy (if it were, everyone would do it!)...

(Oh so much sarcasm) Ya know, those same awesome freedom loving public servants at the Federal Government who brought you smashing hit's like "30T national debt", or "don't worry about your social security retirement because it's gonna be bankrupt". 

, the bankrupt owner filed claims for sinkhole damage on most of his houses.

They have a very large budget and can bankrupt almost anyone other than the big banks.

Tenant may improve property with special purpose development and then go bankrupt Tenant may go bankrupt before completing construction, possibly burdening property with mechanic lien claims leaving landlord with unsaleable and unleasable property.

Having an opinion based on one's experience does not make one 'morally bankrupt' as you say.

Lot's of counties there are putting huge property tax burdens on commercial properties.So even though a tenant is absolute NNN they are having to pay the high property taxes which can bankrupt their business model.