The problem with this is, with the poor climb performance of a typical trainer, probably at max weight, the crosswind climb from 500' to 1000' followed by the protracted levelling out by the student before turning can position you very wide downwind.
Not normally a problem, though you do either need to get the stude to get the level off sorted and double check it after turning downwind - the time it
does get tricky is if you have a crosswind blowing you away from the field, then you
do need to think about climbing more before the turn.