Even seasoned investors have added risks now that there assumed downside may be larger than expected.It is important to gain as much info on your local market, on the how tos of flipping and building your team.

If you qualify as an accredited investor, that opens up a lot more possibilities for you... e.g. partnering with a group that can mitigate your downside risk and diversify your capital vs only having that invested into a few doors.

Right now, I am doing hard money lending on moderate flip projects, because I believe that I have less exposure to downside in this scenario.

It’s been a kick to my shins whenever I think of it but I knew that going into it. ( To help recoup from this downside I plan to convert the depreciating vehicle into an appreciating dwelling by removing the axle/wheels and all things that make it mobile - And to build a foundation for it that is permanent) I believe someday soon I will have a good property in which a converted RV can be a incredible looking guest house in the back.

I've heard a lot of the upside when it comes to them, but I'm also interested in some of the potential downsides to a subject to/seller finance deal.

Not every location that is "down" is truly on the downside and there is real time data to back it up. 

There's very little downside if you already have the passive income.

While I did feel it helped grow my understanding of real estate all around, there are some downsides. 

One downside can be you don't know how the renter was selected.

The only upside to an LLC (besides anonymity) is liability protection, and you can get that with a simple umbrella liability policy.There are, however, several downsides:-financing is more difficult (and more expensive) for an LLC then it is for an individual-you have to do yearly filings (and pay the associated fees/taxes...at least in Maryland)