Only downside I see is that the monthly payment of the loan (which is fully am) is higher than the monthly return from the note fund (which is interest only),  I'd be out of pocket around $500 a month, but after paying myself back, I'd have 4-5k left over as profit at the end of the term.  

As an asset class they have no upside, only downside.

The downside I've seen here is that it is generally much easier to qualify for debt in your personal name. 

A place he's bought recent had an astonishing 50% ROI but the downside is he's renting to less desirable renters but since it's a business, he think the upside is the amazing return (and I agree).  

There are some downsides which I could review for you but they aren't significant enough to dissuade me from continuing to invest here myself.

If time and capacity are your bottleneck, turnkey investing could work for you.The biggest downside, however, is the added costs.

Triple Net investments are great long term investment for an investor.However, it is important to be wary of the the downsides of it and take a calculated risk.NNN (Triple Net Lease) investments can offer several advantages, such as a stable income stream and reduced management responsibilities for property owners.

@Jesse Ottesen my fiancé and I have 2 doubles in Kenmore and I agree the taxes compared to being within city limits are a downside (it’s all relative though), but we’ve had very good luck with tenants.

Also, it's downside protection in case I need to keep long term.

Freddie takes the 5% LTV or less down payment advantage over fannie however freddie has some "other," downsides as well when compared to Fannie mae's 3-4 unit guidelines.There are other programs like freddie mac home possible that can do 5% down up to 4 units but you're income restricted to 80% of the AMI (area median income) so you're in parts of town where it might be less favorable to owner occupy a 3-4 unit house hack as the OP @John Smith wants to buy in.