Your risk is actually much lower in a 3 or 4 unit than it is in a condo, and the potential to save on expenses goes up exponentially as you buy more. 

This is the stage where I face the greatest risk of being stillborn.

You probably aren't going to be able to sell this to a student either as they will be strapped for cash.You may be able to find someone to buy a new house in that neighborhood and make a profit, but then you take on a lot of risk.  

I think your costs to carry are under estimated

I agree 100% about the LLC protection issues, but there's another BIG risks.  

only at your own risk...I've found that actually makes it worse usually) My lease is the same, 1 month lease cancellation fee but they are also responsible for the lease until I find a new tenant.

The downside to them is that they would not get to participate in the overall profit of the project if it all goes well, but of course they also have less risk than everyone else.If they want in as equity investors, you should consider an LLC or a Limited Partnership (with the LLC as the general partner). 

I have spent my time working my way up the ladder from starting in loan servicing, to becoming a loan officer, now working in fraud and risk management. 

There were definitely some risks involved like.

Might get $3000 through Airbnb for a 1 bed; for me the extra work and risk aren't worth it.