In your earlier post, I'm confused about why you felt the need to pontificate about the downsides of withdrawing 4% of your retirement portfolio on a periodic basis.

It's just an unfortunate side of house flipping when you're first starting out - you typically don't have your downside covered.  

On the wrap mortgage seems like a major downside is there is no protection from my buyer defaulting (Which is why I am sure most of the wives do not go for this).

Unless you have a Roth SDIRA, there are significant downsides to investing in real estate with an IRA.  

Downside:1.

This gives much better diversification protection across geographies, asset types, strategies, investment subclasses etc. versus putting all the eggs into one basket.The downside is that it's not for everyone, and a person has to be comfortable with turning over control to someone else.

But the other side of the coin is correct - the downside, and it can be huge, is potential assessments from HOAs who aren't solvent enough for new roofs or roads or maintenance.

Just say no.I would almost never do this trade unless all my downside, including potential unknowns, were completely compensated for. 

Some examples include loss of depreciation, loss of long-term capital gains rates, downsides to using leverage (UBIT). 

Are there any downsides to it?