It seems like location would be especially critical with pad-split (and similar systems), but I’d love to hear your thoughts on what to watch out for in terms of zoning, safety, or demand.Also, I’ve traditionally rented out units the regular way, so I’m curious how screening tenants works for you with the pad-split (and similar) model.

Just ensure to complete necessary due diligence - this can include, but is not limited to, title search, property inspection, appraisal and/or survey. 

They have to agree to a limited agency agreement and then you act as agent on both sides.

Its why for all these folks who work with investors in some sort of syndication mode pre emptive REAL communications or reputation management is so critical and it appears many missed that boat and have allowed their companies rep. ( whether deserved or not ) Trashed.   

Failure to meet material participation rules will limit rental losses to offsetting passive income or carrying forward.This post does not create a CPA-Client relationship.

If you buy in a city with limited appreciation, every investment dollar must come from your savings.

Also one thing to benefit this model is you have an LLC the limited partner can take most if not all the depreciation and you take little or none..

It gives you the flexibility kind of like a credit card that allows you to borrow a certain limit and withdraw funds as needed.

Excluding the periods of “tulip bulb” irrational exuberance, a property must produce enough of a risk adjusted return to satisfy both the ROI demands of the “limited partners”, and the income/time requirements of the sponsor.  

I've never understood those that can't understand the critics of STRs.