I've heard syndication sponsors say in their sales pitches that apartments defaulted less than SFH's in the last recession and so they are recession proof.

The next recession will come. 

@Dan Burstain I have seen you posting these figures of small single digit declines are the worst case scenario for Austin and citing historical impact from the Great Recession.

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

One reason we had comparatively fewer foreclosures during the recession. 

In 2011, when I became a victim of the Great Recession, I decided it was time to pursue what I really love, and I left law and went into real estate full time.

Cap rates are compressed, so if you're just adding in 20-50 basis pts, you likely are going to get caught with your pants down in a recession. 

For someone that's not as conservative, or a different view on the cycle, they might have a different opinion than me on all of this.2) Sponsor quality check: (takes about 45 minutes per deal)I believe that a great sponsor can take an average looking deal and make it great, and that in mediocre sponsor can take a fantastic looking deal and make it bad (especially if there is a severe recession).

Return on cash seems to be there, I am a bit cautious on how viable these markets and deals will be if a recession hits.I think I have a little exposure to Single Family in the Midwest, but not Multi-family as of yet.

While some may argue that a recession can have some dire consequences, recessions also create opportunity.