The downside is many investors won’t invest in this kind of offering, and if you are sued you have no statutory or definitive defense.

@Garrett Tierney,One downside to Section 8 right now is that the Trump admin cut their funding so no rent raises are possible at this time.

Downside. 

Multifamily syndicates are a good option in that value-add plays featuring class B/C apartments have more downside protection than other strategies (people tend to rent more during downturns and tend to migrate from class A into class B or C assets).

The downside to this is that you'll have a higher interest rate than with an owner-occupied loan and you'll be putting more down likely.

I am assuming if this statement is accurate, I dont see much downsides.

(Net $3,000.00 per month total) The downside is the taxes but the high rents make that a non issue.

If anything there's downside risk, so you just have to be more conservative.

Unfortunately this is the downside of buying older buildings and fixing them up.

But, again, the down side of the STR is that it has to be on your tax returns to be used because there is not a long term to lease to use that there would be on a long term rental.