Maybe no big deal if you plan on a long term hold, but quite costly if rates do drop in the next few years as the bond market is predicting.

Most (all) of the books I've read about real estate investing have lengthy chapters dedicated to the benefits of leverage (borrowing, using other people's money.)

The process to qualify is very lengthy, if you’re looking to buy in the next month or two, this program is probably not for you.

@Jim Kennedy thanks, incredibly helpful.so i'll see your lengthy response and raise it......here is what i gathered from an awesome article i stumbled on recently (http://www.forbes.com/sites/anthonynitti/2014/07/09/tax-geek-tuesday-the-irs-finally-figures-out-the-real-estate-professional-rules/#699c23d84760) that gives further detail into 469.  

It is like playing stock market, you either go for skyrocket/angel company or government bonds.

You've got #'s running as if your buying a bond with a set distribution, this is real estate NOT a bond.

Why go through the time, expense, brain damage, etc. of doing a development project if you could fetch similar yields doing some bond investments?

If they did, they wouldn't be posting on Bigger Pockets, they would be a bond trader and a billionaire multiple times over.

This also gives us an opportunity for branding/marketing the management company better, rather than using the name we came up with when setting up our 1st LLC (its rather lengthy)

So, generally now worries about having capitol tied up for lengthy times.