I noticed a few new players lending in the Bay Area multifamily bridge space at 90% LTC, and I had a feeling the party would end soon.

2) How can an investor be protected from the above?

However, as Jeff stated, “a system produces what it incentivizes,” meaning that the more intervention that protects people from struggling though a situation like this, the more we incentivize people to not change behaviors. 

I thought this may be best option as it still gets bank in space on time (and protects me in case there are issues with title). 

If your zoning application WAS approved, you would then have to submit signed and sealed alterations plans by a registered architect that demonstrates that the conversion meets all current codes, including existing building, Architectural life safety, Electrical, plumbing, mechanical, energy and fire protection.

That way even if something goes wrong your investor is still protected.

The first time syndicators purchasing in PHX circa 2018-2019 are in the witness protection program and I wouldn't expect a call back anytime soon.I'm sorry to be the bearer of bad news but if you invested in a PHX multifamily purchased in 2018-2019 then you are probably in for long and bumpy ride.

If you can come up with some kind of income protection agreement with the seller - more power to you! 

Does anyone have language that they are adding to new rental agreements to protect rent payments during this situation?

Each state has different rules and the attorney would know the best way of structuring language and provisions to protect each party.I would ask attorneys you are interviewing what experience they have with RE law and/or investing.