So, what are the downsides to doing a 1031 exchange?

I spoke to a real estate investor who said the association should be listed as additional insured, and the benefit is that if there were to be a claim, it would go directly through the workers' insurance and not through the condominium insurance, the downside of that being that I could have higher deductibles in the future, even though it would ultimately go through the other party's insurance.It seems to me a bit wasteful to pay a bit more to be an additional insured when they clearly have insurance... but is this true that if there were an issue I could have a higher deductible in the future, even if the other insurance will do most of the work?

Is there a reason for this, is there a downside in using their title company.

Buying property in a self-directed IRA has several downsides.

If I rent to the kids and they default, and the parents also default, is there any real downside for the parents?

They share the upside and the downside. 

It's important to consider your financing strategy and ensure you have a clear understanding of all costs involved.While investing in a resort condo can offer lucrative opportunities, especially in high-demand vacation spots, it's crucial to conduct thorough research and consider all potential downsides.

The downside for most is it takes a very high level of sales & marketing aptitude and process orientation, which is the reason I would say most wholesalers fail or take very long to reach financial breakthrough.

We don't have a lot of upfront capital, so the downside to the HELOC is that we are limiting funding for upgrades and such.

What are the down sides/gotchas for doing this strategy?