One drawback is that it’s short term, so you have to keep a pipeline full.

The only drawback is the management.

I haven't rented in this price-range before, and I don't know the benefits, drawbacks and much less the renters for this market.

And there is a drawback to 1031 nobody is talking about - you'll typically overpay on your exchange property, because you loose a lot of your negotiation power.This is another reason to buy quality properties in quality neighborhoods, so you can refi them instead of selling and pull equity out tax fee - the single best tax strategy I know of!

The biggest drawback to being a licensed property manager is the time and expense of becoming a RE broker, or of satisfying a broker sponsor. 

It seems like this might be a good way for two people to buy something and share the risk, but there also might be drawbacks to this type of arrangement that I am not thinking about, and would like to hear opinions on this.I had thought about doing something like this in the Sacramento area where I live, due to the costs of buying one alone - I just don't want to take on that much debt right now. 

Yes we understand the drawbacks of having HOA on our rental property, but this HOA is pretty low and we plan to increase the rent again next year at lease renewal, hopefully enabling us obtain some cash flow. 

There are drawbacks to what Pace taught, too.

The only drawback is, like you mentioned, you may be required to put down 30% (not 20-25 that you might get from a portfolio lender) because it's a quad and non-owner occupied.On the plus side, you get a 30-year fully amortized, fixed-rate loan at rock-bottom rates, as opposed to a 10 year term with a 25 year amortization.

The draw back with buying tax foreclosures is the inability to get title insurance.