I believe that the condo if owned by the business is excluded from FAFSA if the business meets the small family business criteria. Read up on the provisions.
For PROFILE, that’s a whole other story. The market value of the business will include the market value of that property. Whether it is cash draining or not, is not the issue. Many properties are cash draining. Apparently the property your family LLC owns is not yet cash draining enough that your parent will sell it or just give it away if it truly has no value.
We have a cash draining property too. If we were filling out PROFILE, it would have to be listed at its net Market value.
That property owned by the LLC may be getting depreciation and writeoffs that are likely to have to all be added back to income as well, when it come to PROFILE But you likely will get a pass from FAFSA for it.