We have helped over 500 property investors address this question. The typical format is to form an LLC, distribute shares based on up front investment, purchase a BEEFY insurance policy for the property including umbrella insurance. The limit you purchase should be at least as high as the property values and shouldn't cost much.

Make sure you work with a good attorney to set it up, and that there are remedies to discuss what would happen to the shares or what obligations shareholders would have if the property required further investment, maintenance costs, etc.

If your concerned about the financial risks, there are no bulletproof ways to address that in the scenario you are considering. You could do a lot of up front research to verify rent to vacancy ratios, property values in the area, and how sound each of your partners are to help reduce the risk.
Good luck.