Can you refinance out of a hard money loan?

[Melissa Harris]

My business partner and I have found a great deal for a buy and hold but it definitely needs repairs. We would like to use a hard money lender to finance the purchase price and repair cost. I spoke to one this morning and they can cover all of the purchase price and 90% of the repair cost, so we will need to bring $10,000 to the table at closing, which we are fine with doing.

My question is, can we refinance this property into a 30 year conventional loan and use it as a rental instead of selling the property? This would produce us $303/month in cash flow and have a 14.6% cash on cash ROI. If we did this, will a hard money lender allow for us to keep the property instead of selling it?