My question is, do you do exterior rehab and try to refinance out as quickly as possible or should I wait until September when the tenant is out, rehab the property, and then refinance out?

If you have debt to pay off also you could do a HELOC possibly.

Yes, it is possible and you would need to look under IRC Section 121 which covers primary homes. 

Possibly use flipped basement as airbnb to help build back up another downpayment and then property would rent for higher with more rooms and bathrooms when we are able to buy a second home. 2.

If rates fall later this year as forecasted, it could be worth factoring in the possibility to refinance and bring my mortgage down low enough to continue renting it as a short term rental or consider renting it mid or long term. 

CRA (Community Re-development Agency) grants are possible for this specific area.

This is a delicate situation and I want this to be as smooth as possible, having them vacate the property is a last resort option. 

Internet was to flip, but wondering if it’s even possible for us to refinance and rent it now.

I’ll also be reaching out later today to possibly set up a time to meet!

@Oli CimetIt's fantastic that you're looking into possibilities in the Bay Area, as house hacking can be a really successful tactic.