A related downside I just learned is that while you don't receive any cash flow, you receive a tax liability because the cash flow that would have been distributed to the investor is used to pay down the loan principal.The more I learn about these products, it reinforces a no free lunch rule of the universe.I'd love to satisfy my debt obligation, take no cash return, have no tax liability and am willing to trade yield over time. 

The difference is mostly ROI and Cash Flow and time and liability.

@John Busch exactly, it is worth so little that they are willing to give it away, that should tell you something right there, unless you want to build on it, or sell it right away then you get stuck with the taxes year after year and it is a liability not an asset at that point. 

Section D1-4.1, Information Relating to Transfers of Ownership Applicable to All Mortgage LoansD1-4.1-01, Determining Whether a Transfer of Ownership Is Permitted (11/12/2014)[…]D1-4.1-02, Allowable Exemptions Due to the Type of TransferUnless the previous borrower requests a release of liability, the servicer must process the following exempt transactions without reviewing or approving the terms of the transfer:A transfer of the property … to …a limited liability company (LLC), provided thatthe mortgage loan was purchased or scuritized [sp] by Fannie Mae on or after June 1, 2016, andthe LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).

Lessor is not responsible for, nor does Lessor assume any liability for damages caused by fire, theft, casualty or any other cause whatsoever with any respect to any car or its contents.

Family is a liability when taking risks.

At least it could have potential deferred tax liability on any future profit.   

This confirmation must be noted in the mortgage loan file.The employment start date as shown on the employment offer or contract must be within 90 days of the loan closing.The lender must document, in addition to the amount of reserves required by DU or for the transaction, one of the following: Financial reserves sufficient to cover principal, interest, taxes, insurance, and association dues (PITIA)for the subject property for six months; or Financial reserves or current income sufficient to cover the monthly liabilities included in the debt-to-incomeratio, including the PITIA for the subject property, for the number of months between the note date and the employment start date, plus one.

* any unique liability issues?

Any other liabilities for the seller?