Secondly, who cares what the ownership splits are if the gain can't be realized because the values are propped up/can't meet projections, the sponsor cannot execute on the business plan or the fee structure severely eats into the distributable cash when the realization event actually occurs.

The disadvantages of it are that the risks you're taking (and that I outlined in my original post) and the fact that it's gonna take more time until you can earn some rental income.I don't know about you but, if I can, I like to have my cake and eat it too.

Taxes when they get reassessed to reflect the purchase price can eat away at your cashflow. 

I'll continue eating my popcorn, deleting emails, and looking for off market opportunities.

Tenant turnovers eat cash flow.YMMV.

Two, taking on more than you can eat. 

No eating out.

Though the down payment and closing costs will not be huge, they will eat up a sizable portion of our savings.

Unfortunately once you head into the suburbs the higher taxes really eat into cash flow. 

Each one of are told to increase it cause the next one is going higher, little do they know 4 of their supposed "multiple anxious buyers" are all eating lunch together and communicating about that at the same time.