Or, can they be LPs like the cash investors are LPs? 

This allows property owners to make more informed decisions in the management of their property.Bonus DepreciationBonus depreciation is a tax provision that is designed to stimulate investments in new and existing real estate properties by reducing the taxpayers tax burden on said real estate investments.

As to the financing on the deal, did the Bank require you, personally, (and/or some of your LPs) to act as a recourse guarantor on the loan? 

You can protect yourself and your LPs by ensuring the deal you acquire is a great deal.

For such businesses it's common to form a second LLC to be a 1% owner of the first LLC and act like the GP to reduce self employment taxes the the members taxed as LPs. 

@Brian GarrettWe've invested as GPs and LPs in larger multifamily properties in Florida and Texas in the past. 

Often we see LPs for the entities.

So you are in the "deal" but slightly different structure than the normal LPs in a syndication.

Going with a fund that experienced LPs you speak with recommend is a smart way to start. 

Many investors with a 250k-500k+ net worth and high income choose to invest passively as limited partners (LPs) in syndications or private placements.Looking at your profile, it seems like you're a young investor starting out, and you may not have a lot of money saved up yet.