If you buy right, you limit your downside risk.

If they don't want to do so, you wouldn't have a lease agreement anyway, so there's not really a downside to asking.With the amount of risk involved, it sounds like the safer option would be to just start a short term management company and go to the LTR listings and say hey, I'll manage this for you short term at x rate.

The biggest downside I see @Tim Melin, is campground spot availability.

A couple downsides on this one: previous landfill (looks like I'll be using some of the skill I learned on our ROC brownfield development site), currently HAS 6 DEP wells for monitoring ground water, though I'm not sure if they are active.

It does not identify risk, downside if income is lower than expected or expenses higher, or take into account the impact of the $25000 difference in purchase price.I have personally used the buy for cash discount strategy very successfully throughout my real estate investing career.

Downside is more exposure/cash flow issues when vacant.

I like the point about how the lease term could backfire, showing the downside could help me get it removed.  

Downside have a contract with them for 8 years.Upside is if the resident upgrades tv package, or adds phone or internet, we get a profit share.

While it is typical that they do not cash flow well on day 1, if you hold for a bit, they can offer some of the highest cash flow around, with higher quality tenants and price appreciation to boot.The downsides are that there is usually a high cost of entry and they tend to be more volatile, as retail buyers and investors alike sometimes stretch themselves financially to get into a property, then lose the house when things go wrong ... if you know that, then the 1st thing is to make sure you are not one of those people, and the 2nd thing is to be prepared to take advantage and use this volatility in your favor when the market softens. 

Given where we are in the market cycle, I see far more downside risk than upside, unless you pursue a value-add deal.