He gets a judgement he borrows money etc etc..

Against my better judgement we decided to take off $200 for September rent…the main reason was because pest control had to be called for mouse droppings on July 9 (as soon as I was notified by tenant I contacted our pest service) but the pest services couldn’t get in until July 17.

From there, you can make your own judgement.

If not I’m assuming August is already taking up the deposit but if you can get them served this will probably be a default judgement in small claims since I doubt they will show.  

If the neighbors are already active, use your judgement if there aren’t places with higher returns for you and your partner’s time. 

Only DFAS can check pay and that only happens with a civil judgement. 

They'll make that judgement - after your repairs and 6 months are done. 

Sure, they have to "pay" back rents, but what good is a monetary judgement in court? 

Say he gets hit with a $1M judgement and has 0.01% of the LLC, is the LLC liable for more than $100?

You may or may not ever receive money that is owed to you by the tenant for past rent (hopefully, you will receive a judgement in which you can try to collect later), but the time the tenant continues to live in your property is rent lost going forward.