He continues to deny he lives there, lied to the police when they came with a code violation and inspection, and most recently overloaded the electrical and blew/snapped the line! 

If so, you can't really pivot to short-term rentals there and have to capitalize on the inn vibe and in-house services.My major question is why is the current owner, who bought it after it sat vacant for twenty years, looking to sell you the problem they can't fix?

The best advice is don't buy in any area that prohibits STRs or makes operating them so onerous that you're unlikely to make any profit.

Wishing you the best as you dive in, and don’t hesitate to reach out if you need advice or someone to bounce ideas off of.

Let me know if you'd like to chat.

Are they financed in the loan?

This is NOT Business Credit.By establishing a separate corporate credit profile on the EIN Number (separate from the business owner's SSN/FICO), investors can access substantial business credit lines, capital for property acquisitions, and renovation funds without personally guaranteeing the debt.This approach creates a powerful financial firewall between personal and business assets while potentially generating a significantly larger (ROI) through reduced interest rates, increased borrowing capacity, and the ability to scale investments more rapidly.The education gap surrounding EIN corporate credit means savvy investors who understand and implement this strategy can gain a significant competitive advantage.

What’s the purpose of using the LlC other than to make it harder and more expensive?

Welcome to BiggerPockets!

Incompetence to say the least.