The only draw back is that it has a limit of $3000.00 per week, so it's super slow if you need to make a down payment for a house. 

I really can't see many draw backs to instant available cash @ 4% interest.

You will take on the management duties in exchange leaving them with the same proceeds and less work.The drawbacks on a lease option are that you will have less control and this can be a tough sell for a seller who needs a lump sum payment now.

One drawback though is the credit union wants 1.5% minimum payment although that can be adjusted by asking (or so I was told).

@Jesse Watson I would suggest you and your wife spend some time to review all the options (benefits & drawbacks) and work to get on the same page. 

What are the risk/drawbacks of house hacking that I should be aware of?

Criminals are  drawback of MULTI's put a greater part pf your portfolio at risk. 

The drawback to moving is she will not have a job and people will not lease to her without income. 

She has jumped on with me again and checking out properties for me.Another big drawback, I want to spend time with my wife and boys but there is only so much hours in a day and you gotta to juggle and balance around putting various hats - Job, RE Brokerage, REI Mentoring, Rehabs and Kids stuff..

All that being said, there is a few drawbacks to calling Dumbf*ckistan home:Gas pricesTaxesGun lawsTaxesAnd taxesAnd more taxesEssentially if it wasn't for the government, California would be absolutely heaven on earth.