I asked five questions, all in sequence (to build on the prior):  - what happens if you don't pay your mortgage? 

I know if the property was owned by the partnership the sequence would be 1065, K-1, and individual 1040s, right?

Your sequence of transactions is off, financing is not the issue, and the LLC should not be part of the discussion as laid out.  

If you have the attitude that the more you fail the closer you are to success, you have a good chance at the success you seek.Once you have the right attitude in place there are only a few things you must do every day:  practice, drill and rehearse your listing presentation and closing sequences (thank you Tom Hopkins). 

I did that all in that sequence.

Entity or not, the sequence of events would have been exactly the same.I've learned over the years that the whole lawsuit scare is overblown, entities are overrated (from an asset protection prospective) and you always want to have excellent liability insurance coverage.

One of the primary risks in harvesting your portfolio is sequence of returns risk.  

On strategy level, we are ready to jump into action sequence of "doing". 

Sometimes the irony of the posting sequence on here is hilarious.  

Tough lesson to learn about sequencing contractors.  2) We also sealed the exterior walls with a waterproofing paint as a primer coat prior to painting.