You can loose ALL the asset of one LLC, but the concept is to avoid propagation to the other LLC.

@Cole Hagen my feedback would be: 1) don't commit income tax fraud by purposefully under-reporting your income, I may be wrong, but I'm pretty sure the IRS rule is that other/misc. income in excess of $600 must be reported, and 2) if you ignore 1) and do chose to not report it, it's probably not a great idea to post about the fact that you're considering doing so on a site where you have your full name posted, how easy would it be for a Google search to turn that info up or for someone to report you to the IRS based on this post?

She also was subletting my house out so there’s was a lot of excessive damage.

I want to be prepared to answer any objections like avoiding a huge tax bill or loosing his monthly cash flow.

When that happens we have requested the Tax Claim Bureau to send a portion of the exceed proceeds to the PA Dept of Revenue, in lieu of sending excess proceeds to the former owner. 

Can we use it to get out of the contract without loosing earnest money?

If the subfloor is really loose/giving in some areas I would reinforce that particular area before laying new flooring to be safe

I believe that I need to act fast and cautious to ensure that I do not loose out on any property that might be in my price range . 

But poverty levels higher than 20% cause excessive churn and delinquency and eviction related costs.

They have a history in the town that includes loosing their children for undisclosed reasons.