Are there any downsides to it?

The downside far outweighs the upside.

This is a significant down side to me as a long term investor as it basically wipes out your cash flow. 

I have a list of them that I can share with you.Chicago, without a doubt, has some downsides, but there are also a lot of positives, like the inventory of older multi-family properties and price points at all levels.Investing out-state can be challenging because of the distance and the need for boots on the ground that you can trust 100%.

Its like a short-sale, its better than a foreclosure but has downsides as well. 

He does not mention any downside to reverting to an executory contract/ lease option/ land contract. 

However, there are also some downsides to consider, such as higher fees/interest rate.

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.

Also, I only advise my partners to use diversified portfolios for this, again to minimize downside risk in the market.

•KISS – Keep it simple stupid•Low risk as each unit is a small % of investable capital•Downside protection if properties are purchased in areas where they can be sold as residential homes.