If you are skilled in each of the areas above, and you have enough in reserves to cover the costs of when things do not go as planned, then you can likely attract money from private money lenders who want to get a return on their money and they see lending to you as a low risk way of earning a better return than in the other passive investing options they have. 

Hard to beat for zero risk. 

A client can close on a new property with us in less than 45 days so no long closing or pre construction risk anymore with our program.

You can mitigate risk along the way.

I am going to take the risk but will absolutely let the community know about my experience.

There is risk with any investment, anywhere, but airbnb does well here - if you buy the right place.Locations: this is important.

I think the zoning laws are iffy and it's a risk that many investors are taking - and getting away with.

Are there any potential risks or downsides I should keep in mind before proceeding?

I should also mention we shut off the breaker (to the garage) after confirmation from two electricians and our contractor that we had a serious fire risk.   

Risk Management:Every investment has risks, and real estate is no different.