The benefit is they make it easy for you as far as getting everything aligned, but of course the downside is they take a bigger cut.

Downside is you will have to hire a team to keep it 100% presentable and outshine the competition.

The operator has an uphill battle to win though since rental arbitrage has a negative reputation, partly due to all the bad operators out there trying to make a quick buck.Now I have a horror story to share that illustrates the down side, maybe the worst case scenario, with doing rental arbitrage.

This is always a good idea, but if you know that you can move into the property as your primary or rent it out as a long-term rental, then the downside risk is greatly reduced.

One of the downsides to doing wholesaling as a licensed agent, is if you are a part of any number of organizations you just need to disclose certain information to keep things above water.

MF will indeed bring in the most cash flow but as with anything there are specific downsides to MF as there are with SFR.  

The downside to that is most of the owner-occupied are first time homeowners who squeal like stuck pigs if they even whisper about raising dues, and that HOA is having money trouble.That's probably the worst of it.

The downside is it costs around $600-$900/month and I know it will likely take me 3-4 months working 20 hours/week to build out the fully integrated system I envision.

I had full payment during the pandemic and very few tenet issues in 3 years.On the downside, If you are looking to maximize your return then I would suggest you will not be happy.  

That is no doubt a downside and risk of having many single-tenant properties is that your occupancy can go from 100 to 0 instantly.