Such a situation is recoverable if there is enough time for a market recovery and the cash flow is at least break-even (or there is enough reserve cash to cover negative cash flow until it can turn positive). 

Debt is attractive to most people because they don't have the funds to do a project and instead of saving for years this is faster and easier but things go wrong and if you don't have reserves you can quickly find yourself in trouble.

I have heard, but haven't confirmed, that these credits can sell for up to $100k per acre in places like nearby Seattle.

I know the HOA documents would have information on that, but I'd like to know if there's anything else I can do to confirm that I won't be restricted (with the builder/community) if I turn it into a residential rental one day.Thank you and Happy Holidays!

Similarly, looking up deeds of trust, licenses, or other public loan documents, as is often recommended here, will only confirm that the company exists - not that you are speaking to a legitimate representative.

Checking now with regional building to confirm what is required.

So you’re confirming that this will hit my personal credit, and not just remain a LLC liability.

More often than not they fess up and kind of confirm they don't meet requirements if that is the case.  

Legal Implications and RisksThere are a few legal and procedural risks to be aware of:Title and Zoning Issues: Confirm there are no restrictions tied to the property.

I want to be straight with you - trying to invest with absolutely no cash reserves is really risky.