Also, he offered to seller finance the deal for me.

At the end of the day, you want to protect your property while also being fair and approachable.

@Abigail King I invest in several towns in central IL, and am interested in adding some properties in Peoria to my portfolio as well. 

Rather than that, if a loan is called because the property underwent a condo conversion (apartments into condos) or subdivision process without the lenders awareness/approval, would they still be required to offer a preforeclosure period before being able to foreclose, as is the case for lack of payment?

Look at properties that you can ADU or split property off.  

I completely agree with the advice and I'm perfectly okay with not charging him rent.My concern is that by treating this property differently from all the other units in the Series LLC, I may be opening myself up to a situation where I'm weakening my LLC protections even if I keep the financials separate and in order.

That's the challenge with doing a 1031 with multiple properties.

This will be my first rental property and I want to do the right thing. 

.🔴 Over-leveraged finances: Borrowers with excessive debt or insufficient personal capital invested in the deal could pose a greater risk of default.🔴 Questionable property comps: Overstated market values or inappropriate comparables may mean they’re inflating expectations.As always, thorough due diligence is your best protection.

If you can find a good deal in Harker Heights, those properties typically rent the fastest.