We have a similar tolerance for risk and we're both able to see the downsides and the worst case scenarios of every deal we consider.  

One downside, however insignificant, is not paying into SS for the rest of your life might not allow you much in retirement, but if you are talking about having lots of income then maybe it doesn't matter.It blows me away you could live on 450k of equity AND add equity.

As Richard Branson said once, plan for the upside but always protect the downside. 

The downside is you end up paying for the inspection and cash out of pocket for remediation. 

It's downside is that it only looks at what is profitable TODAY, and not what is most profitable 10, 20, or 30 years from now. 

This is a classic textbook problem with what you're trying to wholesale.In essence, one of the downsides to summary probates and similar informal transfers of beneficial interests in a Decedent's estate is that intestacy makes for messy or nearly impossible when multiple heirs are involved. 

@Micah CopelandPresents what could be a large downside.

One downside, of course, is the exterior curb appeal which I can't change much, so looking for the interior ugly duckling in an otherwise attractive complex could be a nice niche.. 

The down side is the loan is still on my personal finances and my LLC isn't developing it's own credit rating.  

The main downside is there is so much demand that their wait list is long.