(The first bank also has a 6-12 month seasoning period, case by case basis, according to the loan officer.)

If you can justify it, document it, it's tax-deductible, period.

ARV is approx 450k according to recent comps, maybe a little more since it will be rennovated (i will do alot of the work bc i am a contractor/plumber)  So my question is, is there enough skin in the deal to buy the house for 300k with an fha loan (not a 203k), rennovate it with my money (approx 50k maybe little more) and then refinance after the 6th month seasoning period and pull some cash out, if possible. 

Maybe if someone could walk me through what I need to do to be ready to buy if a recession was to occur and credit tightens (which is a cause and effect of recessionary pressures).My goal is buy during this type of period and I understand that could be difficult as lending practices change during hard times.

@Randolph Brown disadvantages of HML also include the period in which you have to pay it back (usually one year to 18 months) as the name suggests it’s expensive.

You'll need to check with whoever you have your account with and see its the same, but mine offers two different max payback periods, 5 years and 15 years.

The only downside to that is that if you buy with cash, you have more leverage to make aggressive offers, but you'd have to wait the seasoning period to do your cash out refi.

Waited the 6 month seasoning period to do a standard cash-out refi instead.

The previous tenant was a hoarder which caused the unit to be badly neglected for a long period of time.

However given the upcoming presidential election and all of the uncertainty I believe there will be substantial volatility through that period.