That's my value add   The obligation to build within five years with a single builder is a real drawback in my mind

The drawback I see, is that I cant fund the entire cash purchase of a home with just my HELOC, so I would need additional funds, i.e. the business sale proceeds.Option 2.

While there may be some drawbacks to investing in suburban or non-city real estate, there are also potential benefits, such as lower purchase prices, higher rental yields, and less competition from other investors.Ultimately, it's up to you to weigh the pros and cons of investing in different types of real estate and make an informed decision that aligns with your goals and financial situation.

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.

Drawback?

With vacation rentals, my guests pay in advance, never establish tenancy, and are usually in and out in a week or less.The only drawback to a vacation rental is usually the initial costs associated with acquiring one.

That is a big drawback of this business, it's a job, albeit one I enjoy so am willing to take on. 

You could likely get up into the 100K range.Having just started your own business will be a major draw back either way.

So, there are drawbacks.

Is there any drawback to taking on partners on deals too soon, especially when I am still eligible for conventional financing?