Ignore my answer, I figured out this question falls into the category of "how to deal with stupid clients who went to a seminar and were sold an LLC."  No one at the seminar told them the tax consequences of their meaningless maneuver.  My guess is that they are originally from Oklahoma and bought this property while resident there.  But that's just a guess.  If it wasn't community property when they acquired it, it doesn't automatically become that when they move to Texas.  But they can elect that, which might make a difference to IRS.  

Has anyone told them they need a good insurance policy because they're going to get sued as individuals even if they have an LLC?  And for what they spend on 1065 filing, they could probably buy an umbrella policy that will provide a lot more protection.