@Scott Hollister , Thank you for your response and advice!
To address your questions:
The home was purchased as an investment using hard money. I made a few rookie mistakes initially that forced me into a time constrained situation, and the only way to save the deal was to go hard money. Initially, it was supposed to be an owner-occupant loan.
The property was in fairly good condition when purchased, so no work has been done. However, my property manager suggested some work/repairs on the property, but I’m trying to do the work/repairs after the refi process just because the high mortgage payments are really eating into the cash flow of the property.
I want to use an FHA loan because of the low down payment requirements. I don't really have much cash after the expensive closing cost on the hard money loan. I'm not very familiar with the 203k rehab, but will look into it.
The terms for the HM loan are: 6-month loan, 10% APR, and 5 percentage points with no pre-payment penalty.
Thanks,
Ray