But does come with the downside of managing the build process.

A big downside of using retirement accounts. 

I'm new to this forum so not sure if one can message me but if anyone is interested in exploring this, please feel free to hit me up.After reading so many threads on risks associated with arbitrage as a landlord, I may need extra assurance of downside protection if anything goes wrong in the future.

The downside is that hard money loans have high interest rates so you want to get it rehabbed as fast as possible.4) You could possible refinance into a DSCR loan.

Even if your friends and the other doom-sayers are right and the market still has some downside; RE is a very forgiving investment.

The downside here is it creates a tendency to overpay just to go fast. 

-Since it is a US territory, it isn't considered international investing and most US banks can finance thereSome of the downsides:-Recently declared bankruptcy-Infrastructure is still developing. 

Down side is when you sell and have to explain the difference to an agent or a perspective buyer ;)

The downside is the fact you're violating the terms of that loan and that give the lender the right, but not obligation, to call the loan.

One of the downsides to arbitrage is that the return on investment for it is completely dependent on cash flow; unlike other real estate investments where you can also take advantage of debt paydown, tax benefits, and equity accrual.