I'll be chasing my own dream, actively building my own personal cash flow business, planning for and hopefully retiring at 50, enjoying special tax breaks, stimulating my mind....and the list goes on and on.It's a calculated risk.

If so, they are members and ther is a member manager, if you are talking about LPs, in a corporate charter, you'll have the general partner and limited partners.If you're starting out, tax wise, you're probably better off with the LLC and it's easier, IMO, to set up.

They are forming standalone LPs operating on a private equity model.

To me the downside is lack of control, and transparency (not that they are hiding anything, but you just can't track the numbers like you can with your private portfolio), and possibility to lose it all due to financing and LPs position on debt structure.Just my 2 cents.

This almost always necessitates the NRA file a 1040NR to reclaim the excess withheld, further adding to the compliance structure and cost.A lot of hedge fund managers don't like to have NRAs come into their LPs specifically because they find out about these obligations during tax time and don't like what it does to their compliance bills.A "blocker", i.e. establishing a US C Corp between the NRAs and the US investments, does solve this problem, but again, all factors need to be considered for a holistic approach -- minimization of US tax liability, Canadian tax liability, and compliance fees in both countries.

I suspect the increase in CoC would be large and the decrease in IRR would be small so it would still fool most LPs. 

After Portland liberalized its ADU regulations, it stimulated a boom in ADU projects.

In a real estate syndication it is done via partnership where there are General Partners (GPs) that do all of the work and Limited Partner (LPs) that are passive investors.

Of course, checking with local goverment and obtaining necessary permits is always a must.Hopefully that helps stimulate some more creative thought on how you could take a new SFH and still turn it into an awesome hack.

Not all will show up but it stimulates people to sign for the credit check.