Financing for Owner Occupied - 3 unit conversion from commercial

[Gabe Sirkin]

Need some help with how to finance this deal with minimum out of pocket as possible! Currently set up as vacant commercial property, needs full gut rehab, convert into 3 unit, owner occupied property. Numbers fully check out. 

I finally found my dream property after looking for years, and finally ready for the investment.  An old truck garage with an office. I want to live in the back garage, and convert the two story office in the front into Two 1BR units. It's zoned for multi-family, so no issues there. 

From my understanding, a 203k loan won't work because the existing use is commercial, even though renovations and purchase will be under the loan limit. 

I have a hard money guy that would do 75% acquisition + 100% rehab, but how would I refinance them out as an owner occupant? I would definitely want to pull as much of the 25% out as possible. 

So what are my options? I'd obviously like to avoid the hard money route if possible. I would like to take advantage of owner occupant and first time home buyer. Good credit and good income. 

Any other suggestions?

Purchase $250,000

Rennovation $300,000

ARV $900,000