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.

That introduces the whole out-of-state investing drawbacks.

I have obviously never done this before, and I wonder what the draw backs for me as the buyer are? 

There are other drawbacks as well.Or you could sell as it now (or rehab it and sell at the higher ARV) and 1031 those monies elsewhere and most likely create higher cashflow.

Even in this deal, the numbers looked really good, but that came at the expense of some drawbacks - the house was extremely small, felt crammed, and certainly didn't seem like the most ideal housing experience.

Good morning,Working on a first BRRRR deal, but there is a draw back... the current tenants are locked in a lease until November.

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 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.

Also was able to do a construction drawback as part of the loan.

Yes, a NJF is faster than a judicial foreclosure but there are drawbacks and this is one of them.