If you are soliciting capital for purely passive investment - there are some securities laws you need to consider.

Are you planning to live in the one of the units or is this purely investment?

Then there is just the pure safety issue. 

When we rented in the area, we had 3 families that wanted to stay in 1 home, so we rented a 8 bed, this would be out of our price range, but also we are considering buying for our own family joys also. 3.

Beaumont is also home to HQ of several known regional companies like Jason's Deli, Tex Joy, Seaport Coffee, etc.Having said that, there are some downsides as well.

I’m interested what hosts have to say since this is purely through the lens of someone who rents.  

There is a cost of moving old tenants out, fixing up units, and putting new tenants in so make sure you run your numbers and find a solution that aligns with your financial position.From a pure numbers stand point the best option is to bring all units to a market based rent to maximize value of the asset. 

There are lots of local pros buying them, purely for the limited time rental income, until the mortgagee takes it at foreclosure.

From a pure tax compliance perspective, there is no tax benefit of an LLC.

I see these as purely cash flow opportunities, although I think offering these homes for sale to the tenants is a great idea.