While the cash flow and numbers can work with the right property, I think a recession is 1-2 years away, so buying now could have some drawbacks since I only plan to stay in the area for ~5 years max.

Joe is overwhelmed with the number of attendees at this event and after everything was said and done, Joe walks away with multiple highly competitive offers on the property.However, with every marketing technique, there are its drawbacks.

The drawback is that the interest rate will be higher however the down payment is about the same, 15-25%. 

There are some drawbacks but so far I find it more helpful than not. 

The only draw back is I was paying closing cost twice (once on original loan and again in 6 months doing cash out). 

The first drawback I see with renting rooms is what happens in the common area?

My question is, I always hear and read about how awesome real estate is when it comes to wealth building and creating passive income but rarely do I hear about the drawbacks of investing in real estate.

The drawback is that the only deductions allowed for the property will be otherwise deductible property taxes and mortgage interest.If you either don’t stay on the property at all or rent it out at market rates for more than 14 days in a year, then the income from your short-term rental is undoubtedly taxable.

I think the main drawback is if you lose your job, you have only 60 days to pay back the full amount or it's a taxable event.

@Mike Henkel, from the financing perspective, depending on the loan product that fits best (lots of variables) doing a slow build may have drawbacks as some products have I/O periods that are designed to help you with the cashflow challengers that are expected as the property is built.