Once the rehab was done I refinanced out of the private loan into a conventional loan as a primary residence.

Great for personal residence but not for scaling.  

I just acquired one from a PM where they were charging a tenant a resident benefit package and a building protection plan.  

One solution I’ve seen is closing the purchase in cash, then securing the HELOC afterward, though this carries more risk.

This means that your permanent residence is excluded (except if you are doing a house hack in which the part that is rented out is eligible for cost segregation).

To the nuts and bolt question of what defines occupancy, it is the place you reside and spend the majority of your time/nights.

He wasn’t interested in brainstorming solutions, like using the inspection as an out.

With that said, here is an opinion: You cannot write off anything you use as a personal residence.

Most are going to want to lend on the rehab as it ensures the rehab to be completed,There are numerous ways to pencil it out in your favor though.It benefits to work with an experienced broker who can guide you through the process and put you into the best possible product and solution out there for you.

Investment Info:Single-family residence buy & hold investment.