It is currently up for sale.I'm assuming the flipper will lose everything if the auction goes through (house and rehab costs).

It is NOT worth losing your license over one listing. 

I am going to sell some property and am wrestling with whether to 1031 or take the tax hit and sit in the cash.1031: Buy real estate now with tax deferred proceeds and cash flow now with 100% of the proceeds.But when (not if) the next crash comes, could lose up to 40% of value or more. 

Also, assuming you have income somewhere else like w-2 income, those loses can offset some of that income. 

Fixeds would have me paying until that crash happens but HELOCs let me only pay when I use the money which I think is a better fit for my 'waiting game'.Of course, I agonize that maybe I'm just losing time by not investing aggressively right now with all the money I could possibly get but, for now, I'm trying to be more conservative (as opposed to the last five years of aggressive investing).

You can also get an umbrella policy for yourself, which I think is a good idea as it gives you a second line of defense before you start losing assets. 

Cons: We lose an incredible opportunity to inherit a property in a prime location (10 min from the ocean), 30 min from silicon valley, incredible appreciation, ready to rent, etc. 2.

With all park owned homes, you lose the power of the "homeowner" mentality and essentially have a lower quality apartment with high maintenance requirements, and the tenants can pack up and leave anytime. 

I told her time to go I was always  in contact with her .I even paid a buddy a 100 to haul her crap quick she was a money losing deal I needed to stop the bleeding !

You can still lose your investment in the LLC.