The trade-off is that it can't be used for investment. 

Think E*Trade or Fidelity with different paperwork.

We were able to use that loss to offset the gains on the rental property we're selling, so it wasn't necessary to use a 1031, thereby allowing us to sell the property and avoid taxes even if the purchase of the apartment fell through.If all goes as expected on the apartment, we'll be trading $250/mo in net cash flow for something closer to $2k/mo in net cash flow (potentially more if it's a home run).  

I am what they call in some of the videos, someone you do not want to by, namely a Jack of All Trades.

@Mark Oviatt with regards your question concerning whether to utilize the exemption under 506(b) or 506(c), this really comes down to whether you want to be able to advertise the offering or not.There are a number of trade offs between 506(b) and 506(c).

I dont think that it would completely eliminate the roll of brokers - look at the stock market, you can self trade also but there's still hired professionals who manage your accounts and activity.

If it's publicly traded then its subject to the wide swings in the market.

I am a carpenter by trade and am really interested in getting started in real estate investments.

We are in our early fifties, semi retired and thought we'd trade a longer term for more cash flow now.

He told me he did it so I would always have a trade skill to fall back on and so I wouldn't want to do manual labor the rest of my life (that lesson landed big time.)