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.

These have 30 year mortgages and a variety of benefits and drawbacks, as each lender is different.

I will need to use hard money loan to fix up the home..i have two questionswhat should I watch out for with this being my first time obtaining a loan.What are the drawbacks in obtaining a loan outside a higher rate 

There are benefits and drawbacks to 203k.If you just need money to complete the rehab once you own it, another option is you can always just borrow from a private lender on a promissory note.

However, the drawback to this is a markup on all the fees, unless you were to find a reliable contractor yourself or you did some of the work on your own.

A drawback to them is their return is fixed.

That's' what it sounds like is one of your primary drawbacks. 

@David Smith the loan is a total of 450k but is made up of progressive drawbacks (goes with how much work you’ve completed) so we dont have to borrow the entire chunk at once.

My brother is a contractor so i have an advantage, only drawback is we live in Atlanta and the property is in florida.

Each has it's unique advantages and drawbacks, plus my dad owned rentals and was considering incorporating.If you are just starting, own it personally.