Right market for me, deal size not too small, class desired, business plan and assumptions, payout structure, fees, financing, operator that is seasoned and sees LPs as more than ATM, etc."

These airbnb properties my friend has up and running are returning 16-20% for LPs and +30% overall ROE. 

The Hypersupply phase can last anything from 2-4 years before a recession hits.With the onset of this disrupter - the response to the Corona virus -the Fed has pre-empted the actions normally taken during the Recession to try to stimulate the economy but the drivers for this recession are not economically based and so this again skews the normal cycles.The best lens to to try to assess risk is to stay focused on the dynamics of the normal market - prices for multi-family properties are driven by the demand from investors - the competition for the properties is driven by both the desire for the business ( availability of investors) and the cashflow the property can produce in the future - the cashflow is determined by the space market - ie the market for rental space- the rental space market is driven by the employment market largely.

Not to sound over stimulated but this is seriously freaking me out.

We've invested locally as LPs, and on sites like RealtyShares.We did this mainly as a learning experience, to get into the GP side. 

Most of the time, LPs just want to have a clear exit strategy and are interested in how profitable their investment can be.

Additionally losses can be carried forward for a number of years, so if you don’t use them in the beginning you can keep them for future use.You are correct about 1031s, it is difficult in syndications to perform as there are many different opinions from the different LPs.

What should I ask from them to verify they are a good fit for the KP.I read that the KP's biggest risk is if I file bankruptcy and they become personally liable for the loan and get sued by the LPs. 

Finding LPs is sort of like finding buyers and of course you have to match their buying criteria.

Also wondering what company you recommend for opening up LPs/LLCs with anonymity.