Fiduciaries (which in the case of a self-directed IRA includes you, as the IRA owner).The following family members of the IRA owner: Spouse;Parents;Grandparents and Great-Grandparents;Children (and their spouses);Grandchildren and Great-Grandchildren (and their spouses).Service providers of the IRA (e.g., IRA custodian, CPA, financial planner).An entity (such as a corporation, partnership, limited liability company, trust or estate) of which 50% or more is owned directly or indirectly or held by a fiduciary or service provider; also a partner which holds 10% of a joint ventur of such entity.

So inherited 17 acres from my parents that is free and clear.

The scenarios I am envisioning are:1) Transfer the first 4 properties back into my name, dissolve the LLC, and acquire a large umbrella policy to cover myself.2) Create a second LLC in Tennessee for the remaining properties, an LLC in Alabama, and perhaps a parent LLC in Wyoming for asset protection.For some context, I am planning to continue acquiring properties over the years, really with no limit in sight and will look to diversify to other geographic locations.

A house hack could kill 2 birds with one stone by 1.) getting you into your first investment property 2.) getting you out of your parents house.  

Out of state parents will often pay whatever for their kids to have a place, which inflates the prices above what market rents will support.   

My question is would making the property such a large potential occupancy, ruling out couples without children, and even couples with 1 child - Am I putting myself in a tough position for finding tenants?  

The tenants in the upstairs unit (his parents) have been hoarding for a long time and consequently there are a lot of things in the way of finding out the true condition of the house.

My parents aren't rushing me to get out, but I plan to move into a multifamily property within the next year to get my BRRRR game started. 

When are hardship is involved, like your parents are sick and you need to move to take care of them, a job moves you across the country, etc, then I believe you could rent it out ahead of time to avoid financial problems with keeping the house empty because of the agreement.

This type of LLC compartamentalizes every asset held under the same (parent) LLC, so each asset is not exposed in case of litigation.