Boil red potatoes until fork tender, about 20 minutes. Drain and cut potatoes into wedges. Add to a large bowl for mixing.
In a large skillet, add diced bacon and cook until crispy, about 5 minutes. Remove from skillet with a slotted spoon and add to potatoes.
Add diced onion to skillet and cook until tender, about 3-5 minutes. Remove from skillet with a slotted spoon and add to potatoes and bacon.
Combine vinegar, water, sugar, and Stone House Seasoning in a small bowl. Pour into skillet with the bacon drippings and cook until it thickens, about 1-2 minutes. Pour over potatoes and toss until all ingredients are well-coated. Serve warm.