The drawback is that they will not allow a second mortgage at the time of closing.

The drawback is that they're not as geared to investor use as investors would prefer, but again, they're typically adaptable for investor use.

While this can definitely work and make you some cash, it does have the draw back that you are living in your flip house. you might not always have runnign water, or a stove, or heat, or a place to eat a meal or even sit on a couch.

The drawback is it takes more time to complete, but it also stretches your budget.

I think that's the biggest drawback.

Each scenario has benefits and drawbacks.  

There are greater risks relative to an option like Flourish which is strictly capital preservation, and temporary illiquidity is one of the drawbacks, but if you are selective and do your due diligence I think you can achieve the desired result.    

Here's a financing primer I put on my blog yesterday...it includes most of the major types of financing an investor might look for, other than seller-financing (which is very important, but a completely separate post altogether): Investor Financing Options Now that I’ve spent many dozens of hours talking to lenders and potential financiers of my deals, I’m starting to gain some insight into the different types of loans and equity financing available to real estate investors, and the benefits and drawbacks of each.

Draw back there being that your terms would be a little higher than what you probably have.I'd love to hear more about your investment goals.

The drawback is that it is slow.