Is there a downside I’m not aware of to doing so?

A few downsides I've seen, the lot fee is high here in Denver.

You probably have a lot more experience in flipping houses than I do I'd like to know what you see as the downside because I don't see the downside of listing lower, at least in the hot, low inventory pockets of Los Angeles.  

The downside is that the housing prices there can fluctuate down as well (as demonstrated when the last bubble crashed).

@Janelle Eagle-Robles - so for your specific case there were no downsides unless of course you couple pay the 400 per month. 

Investors should be in first position to earn a return before the sponsor receives a split of the earnings.For investors looking for downside mitigation the preferred return could be a good model.

But the downside with my policy is losing my premium every month. ----  Recently, my agent told me about Return on Premium (ROP).  

Is there some great downside that I am not considering here?

This is fine for me, since it limits downside risk even though I will give up more profits.

The downside is I have to PAY BOTH of them.