The biggest pro of using FHA and conventional financing is you can easily use them to house hack for 3-5% down payment which is an extremely low down payment. 

A conventional mortgage can take weeks to get.  

Being owner occupied means getting the lowest interest rate, and a conventional or fha loan. 

If you're up for some delayed gratification and tax free cash, I think it's a fantastic idea.I would recommend starting with a paint, flooring, kitchen, and bath renovation - more of a cosmetic fixer that can still qualify for conventional financing.

Conventional loan What was the outcome?

Financing and Exit Strategies MatterMany house hackers use FHA or low-down-payment conventional loans.

For those that qualify for conventional financing its another negotiation tool, for those that do not its a way to get into real estate but many do not understand what it is they are signing up for.Regarding it being good for an owner, again it goes back to the borrower, if I have a borrower with 800 credit and I control cashflow its far different than someone with 540 credit.

Department of Housing and Urban Development (HUD) and Bankrate, the big perks of an FHA home loan are:Lower Down Payments: They typically require a smaller down payment than conventional loans, sometimes as low as 3.5% of the home’s purchase price.Lower Credit Score Requirements: They’re designed to help buyers with credit scores that might not qualify for conventional financing.

This may take the form of a second deed of trust if the funds are being used as a down payment on an investment property with a conventional loan.

It's going to depend on the lender, how it's titled and what kind of refinance you are doing.If you're doing a conventional cash out refinance, a lot of lenders are going to require a 3 to 6 month seasoning period prior to refinancing and it will have to be rented first.