The only downside is that the appraiser maybe new, or inexperienced, and it's not a purchase so you need to lead the appraiser to the numbers you want them to meet for your property. 

There is a lot to love about this market and some downsides, which I will also cover.

If people in the system were displeased, the turnover would be substantially higher  On the downside, this path will cost money. 

The downside is the turnover (3-6 months on average) and you would need to furnish your current residence. 

I know this amount seems low, but you have to leave cushion to absorb downside such as high vacancy, depressed rental rates, major repairs, tenant eviction.

There is no real incentive to protect downside risk in some situations, because everything is upside for the deal sponsor.If it does really well, then they make $4M in fees, and another several million in carried interest.

This is a long game, and any strategy with quick upside shares a quick downside risk. 

There is a lot of MO going on here and not much downside ahead some might conclude.

What were the biggest downsides to a DSCR loan in your experience rather than conventional besides the interest rate? 

The do share in the downside, so in that sense it isn't unreasonable but there are better options to borrow.