On a flip note, being highly leveraged can ramp up your business quicker, or it can make you go bankrupt quicker.

It makes sense, there's a ton of information to sort through and horror stories from 10 years ago of people going bankrupt.

Do they have a personal guarantee on the lease, a multi-unit corporate guarantee, or single entity guarantee with no personal where they can easily bankrupt the remote entity and walk away?

When the market is hot and new investors adjust their criteria just to get in to the game, they either end up stuck at one property because they don't have the equity to move in to another deal, or they end up bankrupt because they don't have the cashflow to hold the property long term, especially through a down turn.

Worst case scenario, you liquidate these assets, declare ACME LLC bankrupt, and everyone goes on their merry way. 

What happens to me if they go bankrupt?

Utahns are always going bankrupt because the majority religion tells them to pay 10% of net to the church and have 6 kids. 

Just my 2-cents worth here from a guy that has been eating negative cash-flow for about 5 years now and who knows another guy who just about went bankrupt with his MF purchase.  

Just kidding.. it's when someone is underwater on their mortgage(s) on the property, and they need to sell it by having the bank take a hearcut on the amount of money that is owed to them vs going bankrupt. 

I don't think they did that on my loan, but it didn't matter, they became insolvent, went bankrupt and I can imagine a few were sent to jail.