And once you get the qualifications for a conventional loan, refinance out of it. 

Of course this would mean that I will still be paying my own rent ($600/month) at my current apt while the property is full rented.2) With a conventional loan I am aware that the down payment will likely be higher up to 20%.

Conventional financing How did you add value to the deal?

My goal is to refi to conventional, take the hit on cash flow but in return free up my purchasing power again.The issue I am running into is that the new mortgage upon refi exceeds the county limit ($538,250), making the conventional option unavailable.

My local bank approved me for a conventional loan for the amount of the deal.Savings and 401KHow did you add value to the deal?

If you're in a pinch and need to offload your tickets for the Bigger Pockets Convention next week... look no further! 

@Isaac Hayes I have never heard of a conventional lender doing this...you're looking at single family (1-4 unit) properties...unless you are using a renovation style loan or hard money, I highly doubt any mortgage originator using conforming guidelines would touch this...Down payment is skin in the game...a lender permitting you to retain your investment account without collecting your down payment?...

I went the route of getting an LLC, buying in my personal name (for the great rates/terms with conventional loans), and then deeding the property over to the LLC. 

I’m receiving a conventional mortgage for first time buyers that requires one year of owner occupancy.

I am looking into buying my first rental property with hard money.I am curious to know the process a conventional lender would take to refi out of the hard money loan for the rate and term.