I did a few updates to it (new tile, vanity and mirror), now everyone comments on how beautifully updated it is. 

Zoning red flags jump out on this one.There is no such thing as "technically zoned." 

Based on the fact pattern you gave, I personally would jump at the opportunity to get guaranteed rent (especially going into a recession), a multi-year renewal, low turnover, and annual rent increases even if I had to go through a little red tape. 

The fact that there are little to no comps in the last 6 months is a huge red flag.

First floor has a beautiful open concept kitchen with white shaker cabinets that reach the ceiling, wet bar, hood over range, farm sink, large lit pendants over the island, stainless steel appliances and new windows.

John Bel EdwardsJazzfest, Red Dress Run, the Gretna Heritage Fest and French Quarter Fest have been cancelled. 

Are there any red flags, warnings, tips etc that anyone has for me in regard to the owner financing?

If there are any red flags that pop up, your attorney will be able to step in and provide guidance.

The only catch is - the IRA LLC is named as a loss payee / mortgagee on the insurance documents - so I think that could be a red flag in an audit.

Just yesterday, I noticed a new listing of a beautiful duplex, one of the older houses which I fell in love with.