What are the potential drawbacks of this arrangement?

The one percent down loan program is nice but had some drawbacks.  

You simply need to understand what they are and what benefits or drawbacks they have.

One of them is probably not going to switch because their direct deposit paycheck hits their bank account five days after rent is due; another is probably not going to switch because they work for the USPS and want to keep their employer in business a bit - every stamp helps I guess ;)Those of you using Zelle and Venmo, there is one big drawback - the tenant could make any arbitrary payment amount using those, because they are not designed for collecting rent, they just allow money to be exchanged between users of those services.

All of those decisions have legal and tax consequences, with benefits and drawbacks to all of them. 

The only drawback, that I can see, is that it does not have air conditioning.From what I could dig up, the owners are also owners of a custom cabinetry company, so I'm guessing they bought a fixer-upper, used their skills to finish the house nicely, and are now flipping it.

Main drawback is the high property tax rate.At our REIA meetings I heard about some no-interest loan programs in Homewood so hopefully that may turn around one day?

There are some drawbacks to their program, but I considered it a safe investment.I definitely listened to BiggerPockets podcast and read the forum.  

While it may not be ideal, it's just one of the drawbacks of having an up/down Multi Family.

Area is ripe with rentals but the drawbacks are clientele and care for their place.