Downsides I can imagine is the cost of ownership and higher turnover.

Why won't you help them since the downside to you is minimal?

@Jeff And Vishi and the big downside with home warranties your tenant is never going to want to wait for the warranty company to make the repair.  

If it has a solid ROI for long-term rentals, it will limit the downside from these risks.Hope this helps!

So, you would need to get hard money, or a private lender to close and/or cver the cost of repairs you may need to make.The down side is you have to find the funds to close on the property and hold it a little longer than a typical wholesale deal, plus pay interest and points on the money.

Other brokers do insurance.But there's a downside as an agent working for a broker that I learned a few years later.

@Tameika Craig the down side can be working more nights and weekends.

@Matthew Silvestri:As the above folks already said, the main down side of double closing is that you will need to pay double taxes and fees. 

The upside, 3% DP, "yay".. the downside, putting that little bit of cash down is insanity these days unless you want a $5500 mortgage, lol.

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.