Using an External drive for Projects

Just pondering if there are folks here who work using an external Drive as the Project drive. 
 
I'm in a weird place right now as I'm using 2 desktops as I test out this other machine before I make a decision on which I will keep as my main DAW. 
No problems going back and forth but at this point I'm saving from the internal Sonar Data drives of each to an external drive and transferring between the 2. I have plenty of back ups of these projects so all I do is drag and drop and tell windows to overwrite the existing file therefore updating it in place.  
But is it just as easy to work using the external drive and don't copy at all?  I've always thought it might cause a problem streaming audio over USB. The drive is USB 3.  
 
Anyone here working this way without issues? 

I'll be saving them locally as well, I'm no fool. 
I would just go ahead and try this but I don't want to spend an hour on a project only to find out it was a bad idea. 

I used to use an external USB drive for my projects.  I don't recall there being any noticeable lag time or issues.  I'd assume that using a USB3 port you should be functionally fine.
 
When I upgraded my laptop last year I got a larger HD, but it doesn't have enough USB ports.  I now run my "current" projects from the local drive, but back up to the external USB drive regularly.  I'm not noticing speed difference compared to when I was pulling the data from an external source.

I have always had my projects on external drives. No issues whatsoever, and very convenient when moving between PC's:)

The cool thing at this point is both daws have the same Layout. C drive = 120 SSD, E drive= 240 SSD =Sonar data drive and a F drive= 1 TB data drive. So my drive letters all match on both machines. 
I found that if you use sata 0 for the DVD port 1 for C drive etc then windows assigns the correlating drive letters. And then any external drive  seems to be G. 
So I'll set my projects path to G and see what happens. 
If not it's no biggy because once you open the first project on the other drive Sonar returns to that same place until you shut down for the day. I'm one to pay very close attention to where I am when browsing my computers storage.