conventional 3% DP - catch 22?

[Andy X.]

Rookie investor seeking advice: 

Owner occupied property, conventional loan, qualified for 3% DP, sounds like a great deal for starter home buyers with less cash, and allow for greater appreciation for house-hacking owners, but what are the catch 22?

Here are some of the downside I can think of: 

1) PMI costs, til 20% LTV

2) over-leveraged with larger mortgage payment (more difficult to cash flow) 

3) no refi until at least 20%

3) other?

just because you are allowed to put down less, doesn’t mean you should do it. Is the low DP suited better for a particular strategy? 

I am trying to see if it makes more sense to put down more so I am not as leveraged especially with the larger monthly payments and can cash flow sooner with larger DP.

Appreciate your thoughts/advice!