What would be the draw backs?  

The only drawback is that they are not state-specific. 

However, my question remains what the benefit and drawback of using HELOC over cashout refi. not whether this is a good deal or not. 

The drawback to you is if you decide to sell the house you have to wait at least 72 hours before accepting an offer after you send him notice.

The drawback was the investor does not own the property.

Trust me, we've had 2 and they went to court for us and got them out.Only drawback is that if you are ready to sell the property they get first crack at it for 3 months.

The iPhone does have it's drawbacks.

The drawback would be timeframe for the build and it would not be a true no-money-down solution, given that most lenders are going to want a little skin in the game due to inherent risks with construction: however, a modest down payment on the initial land purchase is often enough equity to meet policies for the full project.Best of luck!

The biggest drawback to a Reverse exchange is the cost.

Although these can be quite lucrative, these assets don't meet the risk and cash flow criteria of us or our investors.Fannie Mae/Freddie Mac loans are attractive for stabilized assets because they are non-recourse and reduce your aggregate risk, but there are drawbacks if you are looking for shorter or more flexible loan terms.