either are great, it just depends how many properties you want and if you want to mitigate your risk across lots of properties or just a few.  

It also has to include the individual's risk tolerance level.Now for the real estate that i would pursue,  an investment that will annually provide a steady cash flow of 10% return or better, a property that will appreciate along the way and one that has the least amount of headaches.

What is done to follow these trends in order to make the most educated decision possible to minimize risk and make the most informed deals possible?

That might create a basis and at-risk issue for the other investor where he cannot deduct the losses from the partnership for tax purpose. 

If the deal is good enough given those numbers, then it's worth taking the risk.

Leases guaranteed by the parents also so mitigates some of the risk renting to college kids. 

Also, think about a longer STR to start if it will carry you - like a 13 week rotating nurse or others who need to be in your area for a month or two.

There will propabaly be investor qualifications (accredited or sophisticated) but it’s a great alternative that allows folks who want to get out of a participation (hands on) ownership role and 1031 up into a more risk averse large MF building while being hands off.The sponsor will take fees of course like a normal syndication (most likely) and the returns may be slightly less, but you should still share the appreciation rights and ultimately just continue to 1031 up and up.Happy to answer questions.  

Otherwise stock pile cash and risk rates going higher and higher over time.

This factors in market risk (the market dropping while I'm renovating), deal risk (surprises that might come up) and the value of my time.