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.

[Beware = https://www.biggerpockets.com/renewsblog/house-hacking-drawbacks/]I would look for a 2-4 unit too house hack.

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.

There are drawbacks, but it truly is passive income.  

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.

Now, they do have some drawbacks, like the PMI is a LOOONG time on their loans currently (if you know what PMI is) and they do have higher closing costs. 

There are ways to monetize the ITC on investment property such as using a 3rd party that can take the tax credit and pass the savings on, like in a PPA or lease situation, but those options have some drawbacks such as clouding the title with a UCC-1 fixture filing (kind of like a lien) which isn't a benefit during transfer of title as in during a sale.

But I've always found that the benefits of this type of investment outweigh the drawbacks.

@Craig Thurman as suggested above the Non-QM Lenders have a lot of drawbacks. 

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.