What does seasoning mean for me?

[Henrik Frank]

I am contemplating trying to pick up one or two REO properties for rehab (assuming I can get them at prices that make sense). However, I'm worried / confused about the seasoning requirements. I would likely be financing at least one of the purchases - likely through conventional or maybe through a hard money lender (never tried that before).

The issue is the seasoning. I keep reading about 90 day FHA requirements and 12 months cash out requirements. What do these mean for me?

90 days doesn't seem like a big deal to me (these are side projects and I'd likely take that long to finish them), but 12 months is a long time. Would I not be able to buy cheap, rehab and sell at a higher price for 12 months????

Does the situation change if I pay cash for a property?