While this approach can be an attractive option for buyers and sellers alike, there are also some potential downsides that should be considered before entering into a subject to financing agreement.One major drawback of subject to financing is that the buyer assumes all of the risks associated with the existing mortgage.

The drawback is that when you sell the property the IRS taxes you on all those years of depreciation in one lump sum (oversimplification, but basically correct). 

Greater cash flow usually indicates a C-D class area which comes with it's drawbacks.

One drawback in California is the $800 per year franchise tax on LLCs. 

The biggest draw back I was having was sitting here thinking of all the time I would waste scanning one sheet physically, at a time!

Draw back here is that they might not be conservative of the utilities since they are not paying for them above a certain amount.

There are a lot of ways to look at this idea in a positive light, but there of course is almost always drawbacks.

The draw back is of a guest cancels with more than 45 days then I offer a full refund.

I plan to form an LLC specific to this property as a form of liability/asset protection, but I am curious if there are any drawbacks to doing that with a property you live in as your primary residence. 

Discuss the benefits and drawbacks with your lawyer of an unrecorded deed like that.