The down side with this strategy that might give you a higher income number would be that it requires 2 year landlord experience(FHLMC) unlike the typical 2 year tax return program (FNMA).

However, this is already a non-performing asset for the bank, so there is no downside for them to call the note due on a Sub-2 transaction. 

The downside was that my credit score went down from 740 to 620.

Consider learning a trade - plumbing, electrical, HVAC - all will save you lots of money if you choose RE niche that requires remodeling- do not spend your money on liabilities such as newest phone, outrageously expensive footware, etc  (if you havent read Rich Dad, Poor Dad, do it now) - consider summer internship with a RE professional (agent, investor, title agent, general contractor, etc. too many to list). downside - probably wont earn much money, still will need to wait tables at night to earn that cash :) best of luck to you!

The downside is if you are a nonaccredited investor, there are very few choices for first trust deed funds.

If they find a bug, they will not fix it.Now one of the reasons is that as technology changes, other programs such as Windows, etc changes, QuickBooks is also updated.The downside in using old software when you upgrade to a new version, all the data may not transfer over accurately, that means more time and money you are spending to get it right.When someone tell you not to upgrade - I have one question - how often do you buy a new car and why?

That said, if you find a solid deal with a reputable Sponsor, you can expect some down side protection that alternative investments may not offer.2.

You would also be getting professional, experienced management, versus trying to learn yourself on the fly. ( The downside is that you do have to pay for the management.

So there is no downside for you to get the additional liability protection.

As you know, leverage is great for growing faster but the downside is your situation is less stable.