that's the way to own low value assets NO DEBT  SMART good job !!!

GPs are providing a personal guarantee on the debt.

Very few, if any, shall in fact make it that far.When an audit ends badly, a taxpayer can sue in Tax Court. 97% (or so) of the cases that go to Tax Court settle – and in the vast majority of cases, the settlement favors the taxpayer.

Are they buried in debt?

It is possible to take on new debt for limited purposes in bankruptcy, though there are more exceptions and potential snags to get into here that will be where your client's attorney comes in.

Also, I have very little capital at the moment but I anticipate being able to stash some cash away in the time that I'm researching (I have no debt other than the two houses I own; one is rented and I plan to rent the other when I move out of the US). 

In regards to bullet above, when the bank looks at my Debt/Income Ratio will they be factoring in the rental income that I would be making on the condoI am questioning whether or not it is worth thinking about buying this condo under an LLC:Will buying under an LLC allow me to not show the debt in my personal balance sheet or does the debt flow through the LLC to my personal balance sheet? 

All my other debt has been wiped out and I’m finally back on top with 20k saved up.

The other issue is low liquidity from debt providers in ABQ for that asset -- they want really stiff terms, have low lending limits.

Their ratios are under 30% front and back end, they have little debt.