No cashflow to speak of, and the first time you go vacant, you'll be so desperate to get it rented that you are vulnerable to picking a lesser quality tenant just to keep the money flowing.  

I think the higher-end are more  vulnerable in this market..

And I don't think this makes you vulnerable to the tenant.

I'm sure you would prefer to buy it yourself with owner financing but I think you would be putting yourself in a vulnerable situation.  

Too many people see litigation as THEIR "way to wealth": find someone vulnerable and use the courts to take everything you can get from them.I do NOT advise waiting to save your own money.

It's a domino effect and usually the poor and most vulnerable in society pay the price.  

."-- and a related corollary --"If your 'success' depends on the ignorance of others -- you not only don't deserve to succeed, you deserve to fail and go down in flames."

My concerns about commercial are that these products are more vulnerable to the economy.

OTOH, then you're more vulnerable if you get sued.So if given the choice, would you finance commercially w/ an ARM and LLC, or go traditional w/o the LLC?

Historically, I have given my tenants way too much grace when it comes to paying their rent late, and it has left me vulnerable to tenants who have taken advantage of me.