If you think something suspicious is going on, contact the proper authorities.

The option was not drafted properly and was determined to be a sale contract.

Analyzed properly, rental income would cover expenses and produce cash flow.I am tired of NY anyway.  

The rehab cost could be 5k or 100k, you don't know without a proper inspection and plan.

Your intentions were proper, nobody's  going to foreclose, or put a blacks mark next to your name in the record book.

While owning a properly run manufactured housing land lease community can be and normally is a cash cow when compared to other forms of commercial real estate, properly running it requires knowledge, hard work, and some intelligence. 

(I do have a really good credit score and history, at least 750) Will each 4-unit building generate $1,000 at least of cash flow given that we give it proper management/maintenance?

Just need to find out what paperwork is needed to proceed properly.  

There are a lot of things to consider, but if the building has been properly maintained over the years or professionally restored then there shouldn't be anything to be concerned about.  

I hope Jason gives the proper notice on his recorded phone calls, wiretapping can be a serious issue. :)