The downside is you will need to live there, for a minimum of one year (to satisfy FHA Requirements); AND because you closed personally, you will not have Asset Protection, in the form of closing in the name of a LLC.

The only downside so far with them is the wait time to get a house. 

This is another possible major downside to your plan.

But I guess if the interest rate is better than a money market then there's no downside in that arena. 

To me the largest downside of Turnkey investing is having to use large downpayments and limiting your ability to scale. 

The down side was, they came back a few days later with a plan, and stole the security system.

The downside far outweighs the upside for a rental.

The downside is that you'll have zero equity after you close.A BRRRR property is going to give you cashflow in 3-6 months, with a lot of headache.

The only down side is the public schools in Hampton, which I can contest to graduating Phoebus High School, and I am thankful I live in a age where I am able to use Google. 

But, as a local attorney, I want to warn you about the downsides of the anti-LL laws in NY especially in rent-stabilized properties.