My concerns about commercial are that these products are more vulnerable to the economy.

OTOH, then you're more vulnerable if you get sued.So if given the choice, would you finance commercially w/ an ARM and LLC, or go traditional w/o the LLC?

Historically, I have given my tenants way too much grace when it comes to paying their rent late, and it has left me vulnerable to tenants who have taken advantage of me. 

Tenant pays a percent and Carpet CAPEX pays a percent.When a tenant moves out, if for some reason it seems usable (able to bring market rent)  past its numeric service life then pocket the CAPEX monthly set aside amount vs savings it.Since you are in a stronger position you could hammer it to vulnerable people (and tenants you personally don't like) and keep their security deposit for things like this, and hope to win the court cases some will bring against you--but that's not how I do business.

Based on my experience you are in a very vulnerable place

Been watching a lot of videos and reading on how to find the right deals and how to properly do a lease option but I still feel vulnerable because of my inexperience.

Small cities tend to be reliant upon a single industry, which makes them vulnerable to economic changes.Population growth - If people are moving into a location, it is probably a good location for jobs and a desirable place to live.

According to the town, "Seaside Park is particularly vulnerable to flood damage from hurricanes and other coastal storms...In recognition of these hazards, the entire Borough has been designated on the Flood Insurance Rate Map for Seaside Park as a Special Flood Hazard." 

It's been a crazy year and I've never taken as much risk and been as vulnerable as I am now, putting faith in God that financial freedom is his plan and taking massive action.

If you don't use a contract you are more vulnerable to an undesirable result.You can find some contracts online, but beware they are thorough and valid in your state.