Their major downside is you not having at least $50-$100k of your own cash invested means they really got nothing and would lose their behinds if you failed to make payments…(assuming no realtors involved, otherwise they need $100k+ of your money Just to be even on current sales costs and future re-sale costs)

This diversification can help spread risk.However, it's essential to consider potential downsides and challenges as well: Property Management: Managing tenants and maintenance for multiple units can be more time-consuming and challenging than dealing with a single-family home.

I'm looking for some downsides to this niche so I fully understand it.  

Still trying to get data about how difficult it is to get your kids into the good school, and how expensive it would be to mitigate downside school risk by going private for 1-X years (could get expensive if BOTH are in private!!!) 

However, the downside is that they want to go to a month-to-month lease when their lease is up on July 1 due to the fact they are looking.

Yeah - the issue is though, from the lenders perspective, unless they absolutely trust you completely (not only trust that will try, but will succeed) - its hard even to come up with a fair portion because you'd have no downside or "skin in the game" - i.e. no incentive to keep going if the project derails because you have nothing really to lose

One of the downsides of conservative investing is slower growth the trade off being lower risk. 

I believe I can make much more profit, and more importantly protect the downside, by investing with experts whose combined deal pipelines are much larger than I could ever dream of on my own, even if I were working at it full-time.

The BIG downside is that it can take up to 5 days to actually get your money deposited.

The downside is that if you put a loud obnoxious tenant in your unit you could experience higher turnover costs when they leave and potentially have their neighbors be calling you to complain.