So this is a very common business practice across multiple professions associated with the construction. 

Unless you find an attorney that exclusively practices in this area, they won't have that level of knowledge.  

.- Insights on the best practices for structuring these entities for optimal asset protection and tax efficiency.- Any potential pitfalls to watch out for during this process.If anyone has navigated a similar setup or has referrals to professionals who can help, I would be extremely grateful for your input!

It reminds me of the Gozone Benefits not sure Michael if you were in practice then.. but that was the post katrina And in the zone if you bought new construction for investment purpose or your own use.

This is proof of that in practice.

Or if you all can share some best practices for new partnerships?

It is best practice to wait 6 months and most lenders won't and shouldn't do it before then. 

And practically, you can keep more of your money.  

As soon as you start discussing your business practice and strategies with your customers (tenants), then all bets are off and you run the risk of Fair Housing violations. 

Building your portfolio one house at a time is a super practical approach.