The main point of the LLC is to protect your personal assets (and other properties assuming they are in their own LLC's) from liability based on what happens on a given property.The drawbacks can be admin related and sometimes cost related.

The other real drawback though is that Illinois is just not as good a market for multifamily returns.I don't see the money there that single family offers - no even close.I think the only way I'd do multifamily is if it were out of state and that opens up a whole other can of worms there.  

What are the drawbacks etc?

The drawbacks of not preparing it properly certainly outweighs the issues that could come up. 

My question is for those that have used this software, what did you find as the drawback? 

Then when there is demand by the tenant the point of use water heater in their unit comes on and is able to heat the warm water from the tank to hot water for use.Possible, stupid, drawbacks?

My units show better with appliances and less drawback for my tenants to think about.You may find warranties are not available for rental properties with some manufacturers.

For example, some drawbacks is the $800 franchise fee that applies to LLCs in California, and the LLC would be considered a partnership so a federal tax return (Form 1065) will need to be filed for the LLC as well as a K-1 for each member of the LLC (the IRA and the solo 401k plan).

S Corps have their drawbacks, though, and are not the right answer in every situation.

What are the draw backs to selling your own house?