I actually called him when we were setting up a precursor to our current fund to get some advice on this because we wanted our LPs to be able to invest with their IRA funds and not be subject to constraints like they would if they invested individually.

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.

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. 

Sacramento is 9/10 (very good but slightly worse than large CA coastal cities)  Sacramento appreciationGood luck I went to a Brad Sumrok event a few years ago and there was like hundreds of LPs / limited partners and they did a macroeconomic high level view of apartment investing.