Everything looks good financially, however I've not sure what I should look for or how to protect myself from, any possible outstanding taxes or other liabilities that might be hiding out there on the subject acquisition LLC.

But it's their way or the highway, so try not to get too frustrated or outraged.The banks, at least all the major ones I've dealt with, will not allow you to sign, change the buyer name, etc. 

It was built in 1930 and sits between commercial complexes on 3 sides, 4th side is open to a local highway.  

It was built in 1930 and sits between commercial complexes on 3 sides, 4th side is open to a local highway.

@Logan Allec provided an outstanding explanation, and @Basit Siddiqi added couple good points.I just want to frame the bigger picture: the new law does NOT hurt ("hose", using your word) people who receive 1099-G for prior overpayment. 

Just to be clear, you are asking if you should (a) walk away with $20,000 or (b) take a multi-year 100 point hit to your credit and potentially be sued personally for any outstanding debts that aren’t extinguished by the foreclosure auction (depending on the rules in your jurisdiction)?

Historically San Diego is almost a sure thing at producing outstanding ROI. 

Yes it might still be a good investment if the market continues to rise but it's harder to guarantee that.If I were you I would start looking east down the major highways to where the workers live.Go into a restaurant and ask your waiter/waitress where they live and that's where you want to invest for cashflow.

Hi guys - There is a huge development off the side of a 4 lane highway near my home that I want to identify.  

I originally cherrypicked 12 units at 450,000 contingent on any outstanding repairs needed .