It all depends on how big is the issue and whether it's been addressed properly.

I've addressed concern over the master bath because water continues to run internally and hissing sounds ensue for 5-10 minutes after water is shut off.

I think I would be a little concerned about being in California. 

My big concern is they have another park that funnels into the same bank account.

A dwelling unit is not habitable if it violates provisions of housing or health codes concerning the health, safety, sanitation or fitness for habitation of the dwelling unit or if it substantially lacks:(a) Effective waterproofing and weather protection of the roof and exterior walls, including windows and doors.

Stay on top of how they are doing with your income and expenses and know what you expect.I am a little concerned about California and what i see on television. 

You may also have Registered Agent fees if you don't want to use an address you currently have (like a personal home).I've helped dozens of members here setup LLCs.

Besides potential improvements that can be made to increase the income, I'm concerned about additional expenses will I'm sure no doubt will arise once I visit the properties/ am provided the actual financial sheets on the properties.

My concern would be losing the current mortgages. 1) Would transferring the 2 properties I won't be living in, but renting into an LLC be the right move?

@Jennifer Green Tell them to get window units for the areas of their concern.