Development costs will often be the biggest hurdle, meaning: sell the land you have and buy an existing park, campground, rv park and "upgrade"/ convert the sites to tiny home compatible. - and you'd be ahead.

Been through this situation in CT a number of times and the law can vary state to state, but in most cases the tenants think for some reason they can use their security for last months rent and once reminded the situation resolves itself if otherwise the tenant has been good about paying throughout their lease term.

Most of the banks offer line of credit which should resolve your problem. 

Anyone else had this issue and how did you resolve ?

I have a 4th deal, a 3-2 SFR house that's hopefully going to close soon if they get a title issue resolved.

Our goal is to help assist motivated sellers in resolving their problems and getting them taken care of by connecting them with genuine investors/buyers.On a separate note, we are also interested in investing long-term in the DFW market with our good friend and business partner, Minh, who lives in Dallas.

Also, is there an alternative course of action to resolve this dispute?

I hope your situation can be resolved.

Additional info: I am not very spooked by the idea of less desirable neighborhoods, I feel like a good property manager can resolve most of those concerns. 

I bet you could find new tenants quickly once you resolve the situation.