The biggest downside is that the servicing fee ($15ish per month) eats into the payment you're receiving and has a bigger impact on those small notes.Good plan though.

If you really want the property, just put in your best and final ... otherwise, if you want to try to horse trade a bit put in a lower offer and try to negotiate but understand then that you are running the risk of getting beat out by a higher offer in the meantime.This is an old post, but I'm researching Escalation Clauses and I don't see you're point.What is the downside to revealing the highest offer? 

The down side is that if tenant [T] leaves and tenant [B] remains you then have to go through the process of evicting [B] which will be more complicated if he is not a registered tenant.

Only downside is moving out of center city, yet still getting hit with the Philadelphia wage tax.  

The only downside is that this 3.5% interest will be taxed again in future (you would be taxed on whatever interest you earn at your regular income tax level now).

Buying properties in good locations and adding value both provide downside protection. 

I did my homework (running the numbers, checking the local market, checking job and population growth, etc.) before making the purchase so I knew going in I had a great opportunity to make money and my downside risk was low because the market wasn’t likely to turn towards a recession.Take Away: Don’t play unless you are 100% focused. 

@Tim Boeving break it down side by side and do the math.

However, the downside is that it is difficult to see what is ACTUALLY going on in your business.

Is there any tax benefit/downside to holding a rental that is fully depreciated?