Downsides would be commercial financing with adjustable rates and balloons (which you already have), the properties would have a smaller buyer pool and probably take longer to sell if you choose or need to, the tenant class may be a bit more management intensive for a similar location, and higher buy in price.

( I prefer to only have the first variable) Would you place a calculated bet that didn't cost you any cash, you received tax benefits (interest expense & depreciation) & had high upside with very low downside?

The biggest downside I see is the inability to use leverage.

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.

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.

Being young and highly optimistic is understandable but as long as he calculates the downside if it does not work out in his favor he should be fine. 

This is true.Depending on your situation, it can take a quite a few years off the length on your loan and save you a ton of money.The downside being that you will have less cash for your next deal.

I've considered buying some land and then having a slab and a manufactured home put on it Vs the Std. site-built home... curious if there are any "down" sides.