There are some downsides with fees and such so research completely but I was blown away by this option.

The downside to Bank Statement loans: higher rate and 10% down required for owner occupied. 

The return is good so there is no down side though. 

The major downside to entities is that you will not be able to get FHA loans or 30 year amortization loans with commercial lending.

If you buy every lien as though you might end up owning it, you can limit your downside, but you will not eliminate it.All that said, Tax Liens do offer great opportunity, but you have to do your homework...

I've lived in this house for 6 years and doubt I've spent $2000  total on repairs.I'm guessing that means you haven't yet had to replace the roof, or the HVAC system or the water heater or any other capital items that will eventually wear down (siding, gutters, electrical, plumbing, countertops, cabinets, appliances, etc).And keep in mind that repairs are only a small part of the 50% loss ratio you'll see -- the rest is taxes, insurance, vacancy/rent loss, property management, turnover costs, utilities, exterior maintenance, legal fees (you'll eventually have to evict someone), etc.It's not uncommon for the first few years (in your case, at least the first six) to cost significantly less than the average year. 

Also, flexible liquidity can be good, but there is also a very big downside to this....though I imagine there is something in the agreement where the sponsor can freeze redemptions in certain situations.

There are a lot of down sides to owning real estate that don't fit their way of doing business. 

Such locations might slow down, but I do not expect a significant decrease in prices or rents due to ongoing demand.What is the downside of waiting if you plan on investing in one of the appreciating markets?

I don't know you particular circumstance, but I definitely understand the benefits of subject to, but there are some down sides you may want to be wary of.