Indianapolis. each side is 2bd (upstairs), 2BA, large dining and living rooms (separate)vacant lot next door on the cornernear some revitalized areasseller has 100% equityThe main drawback of this deal is the property is a complete mess.

There are certain drawbacks, such as you cannot take the money out until retirement, and that you cannot live in or otherwise personally benefit from the property while it's owned by the IRA (ie. rent out to yourself or your spouse, use as a vacation home, etc.)

As long as your bank is okay with you being an LLC and doesn't mind lending to that, then there isn't a big drawback (some paperwork initially and a yearly fee).  

Assuming I want long-term cash flow (primary goal) and to protect/grow capital in the process (secondary goal), what benefits or drawbacks do balloon payments have?

What are the drawbacks of using a FHA loan? 

Managing Tenants in order to do it with Rentals is just one of the drawbacks to this route to make the monthly Cash Flow.

Drawback for you is that anyone able to pay that much in rent for a house wont limit themselves to that small amount of footage.  

We think the 3 bedroom is the sweet spot; unique enough but not too unique.Craigslist does have some drawbacks.  

Not knowing how to access the funds or proper ways to structure the deal has been my drawback.

I live in Memphis. 6) If I decided to go with the 100k-200k range, my thought would be that it's less management (that is to say if i do my tenant search appropriately), but what are the drawbacks?