When you buy a property at a time, the risk from the uncertainty is small.

If not rented at fair market rent, this property will just count as your residence, not a rental for tax purposes.Structuring the property under an LLC or land trust could trigger a due-on-sale clause, so check with the lender before proceeding.To minimize risk, consult a CPA for tax strategy, weigh financing costs, and draft a legal rental agreement.

I am guessing a few will say to have my lawyer do it, but the other LLC was so seamless that it seemed superfluous to have someone get involved. 

In Tennessee, my go-to is Southpoint Risk in Knoxville.

Since the property has vacancies, a buyer might discount for lease-up risk, so that’s something to factor in.I owned a multi-use property in IL that is definitely different than what you're looking at.

Leveraging equity does involve some risk, so it's important to have a sound strategy to avoid overextending yourself.

The cost of a sewer line is the same whether it is on a triplex or a single family home, but with a MFU you can spread the risk.

As mentioned above get involved locally. 

However, there are likely multiple more terms involved in your partnership with this hard money lender.

I don’t know why anyone would take that risk for little reward.