The house has to appraise for 20-30% more than the money you want to draw back out.

Your drawback on a 30 year is that you pay more interest, but you can overpay if you would like.

I'm no expert but I have been looking into FHA and the biggest draw back I see with FHA is the Mortgage insurance with a 1.75% upfront charge and an annual charge which lasts for the loan term.( http://www.fha.com/fha_requirements_mortgage_insur... ) I think if one can qualify for 5% conventional loan that would be a much better choice.

And I would make sure that the person whose name is on the deed get some form of umbrella insurance for liability.Some other drawbacks I can see is that the person whose name is on the deed gets all of the tax benefits of depreciation, while the other partner gets none of those.

The draw back of new construction are the impact fees, and time to get through planning, though maybe that's changed.

I've done all of the above and they have benefits and drawbacks.

The advice above is spot on...they all seem to hav benefits and drawbacks.

The appraiser will confirm those numbers with rent estoppels which will make the lender feel more comfortable about the income numbers.The one drawback you'll have is the low loan amount.

This has several drawbacks:1.

Investing in a crowdfunding site has some drawbacks and Mark Kenney did a nice job of covering a few.