Downsides are - RentRedi charges the tenant a dollar for ACH.

The benefit is that they typically will not loan to you if the deal is bad keeping you more safe as the borrower, the down side is the time, the loan docs, the higher rates, the fees, etc.Private money lenders are private individuals who are not typically licensed to do real estate loans, they are friends, family, co workers, or people you come into contact with who have interest in investing in real estate passively but do not have the knowledge or expertise to be active in said business.

I'm looking to get my home re-appraised for leveraging purposes. I am not positive what it is assessed or appraised at currently but I paid 200k for it and I'm estimating a current appraisal of 230-250k. I am wonderin...

One of the major downsides is the smoke season, which is a real thing these days.  

It seems like a good opportunity but it would be helpful to hear the downsides from someone more knowledgable in the area.  

Either way, no downside for you.

@Sam ChoiNo commissions because no agents were involved..and they were all occupied, so I didnt do any rehab yet..but  the downside is I dont have full knowledge of the property condition either...but the tenants are paying their rent!

The down side is you'll get a smaller return on your investment.

The downside to this single family strategy is that it is tougher to scale without a doubt.

I actually bike in that area quit often and the only downside to that location is that duplex is located right on the edge of the rotary there.