If you want to get a personal judgment against an LLC owner who has incorporated, you must prove that the LLC is not being managed properly by some statutory or case law deficiency.

After observing the properties performance we have noticed three major deficiencies which need our attention for the property to perform much better -  1.)

The inspection report came back, and there are a ton of deficiencies( roof in bad shape, pier and beam findings suggesting movement of the property, improper electrical fittings, gas lines not to code, etc).

And all I can think is that there are serious structural deficiencies and this property should be condemned.

If there is a chance of doing a deficiency, they may prefer to go to foreclosure then pursue the owner for the shortage.

2) Property is in CA- is a deficiency judgment possible on either the 1st or 2nd TD?

My accountant told me not to take out a recourse loan, one that allows for deficiency judgments (this would bemy first loan).

The assumption of any borrower is that the collateral is sold to pay the outstanding debt, and this must be done for a lender to seek any deficiency judgment. 

I've heard of using a standardized form and checking boxes in their areas of deficiency - but in all honesty, the only reason they are being rejected is that the tenant I ended up choosing was is the one that I got along with best.I want to avoid anger and/or backlash but also want them all to feel like their applications were well reviewed 

But, if the property is not really marketable without SF, you'll likely be in the same boat unless you fix deficiences...if you can.