You have to have an additional radiator to cool the water. It doesn't need to be big, usually an oil cooler type rad will do it. You're also carrying a little more weight. Pros: fits anywhere, can add ice water for super-efficient cooling (drag racing only, obviously). Cons: slightly poorer cooling efficiency without ice, significantly greater installation complexity (IC core, water tank, water hoses, water pump), increased cost, reduced reliability.
For a street car, stick to a nicely sized air-to-air unit IMO. I've seen people running FMICs on B3 turbo swaps..
Behind the left headlight seems to be a popular spot.
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