This should be a fun little adventure for your players. The hook is spectacular - an overt and startling bit of violence to get the characters into a bit of investigation. The story is very clearly described, with everything that you need to mesh the clues into Red Larch - or any other village. The small dungeon is the perfect size for an evening of exploration. Descriptions are clear and, through details and monsters, set a "creepy" mode.
I'll move it to the "Undercliff" region of Waterdeep - I expect my group will enjoy it.