Not only do you bring double taxation into play, but financing (refinancing) is done with commercial loans (higher interest rates, higher debt service, and balloon payments), and transferring a property out of the corporation to yourself is a taxable event at the property's FMV.Another drawback, since your property is in the corporation, you lose the $25K net passive loss allowance on your personal income tax return.

What exactly is a sandwich lease and what are the drawbacks?

If you don't have the appetite for risk a value-add strategy entails, dividing your current capital into down payments for turn-key properties will also work, but there is the drawback of equity being left in the deal while you save for the next one.

The one draw back I have atm is that I'm currently living in the middle east.

The draw back to these loans is that they are more paperwork heavy than the other "portfolio" types of loans....but if you have ever received a loan on your primary home, it's likely that you will go through the same type of paperwork here with conventional lending.

The only draw back is that commercial terms are not as good from what I've seen.

The main drawback with cozy is that they don’t have an app- so you have to navigate a website on your phone and they want to like triple authenticate every sign in.

I feel like even with its drawbacks it can be very powerful for a house hacker looking to add some value without having to come up with the rehab costs in some other way.Thanks!

Vermiculite insulation in buildings of those 5-6 decades seems to be a way too common of an issue to be a very major drawback.

If you can live for free that would be awesome and totally worth the drawbacks.