There are three degrees of separation… the 1040 to the K-1 to the 1065 to the 8825.Downsides include the additional tax return preparation fees and perhaps unnecessary state taxes such as California’s franchise tax and LLC fee which can be summarized as money-grabs or pleasure to do business in our state fees.

The biggest hurdles, obstacles, and challenges in life that limit your belief and mental structure in no particular order:1)Thinking where you start is where you finish.2)People resting or stopping in the middle, not at the end. 3)Prioritizing instant gratification rather than delayed gratification4)The controversial mark twain  quote or not quote--It ain't what you don't know that gets you in trouble, it's what you know that ain't so.5) The lack of an ability to move on.6) Not appreciating the power of delegation.There's probably 2-3 others I am missing, but over time these have rang so true in any instance I have faced in life.

One of our biggest challenges in the first few months was to get vendors to come out to work on the property. 

Now look at the downside.  3 scenarios.

@Eddie Smith we've found the two biggest tenant complaints:1) Maintenance expectations not met (taking too long)2) Expectations of communication not metThere are many more complaints, but majority are tenant-caused that they want a free pass on: waiver of Late Fees, Payment Plans to avoid eviction, being allowed to get a pet or otherwise violate their lease with no repercussions.

Feeling fear is always part of the process when you're purchasing likely the biggest asset of your life. 

Development costs will often be the biggest hurdle, meaning: sell the land you have and buy an existing park, campground, rv park and "upgrade"/ convert the sites to tiny home compatible. - and you'd be ahead.

Having real skin in the game is a major incentive to do the best thing for investors in a downside situation. 

One of the biggest questions to ask when investing in real estate, is where?

Fear (not financing) is one of the biggest danger with REI.