You can also go conventional then refi

Don't expect Conventional rates though.  

Switch over to conventional and put 15% down or be able to have the renters out within 60-90 days after you close.

Conventional loan with 20% down can avoid the occupancy ratio.

In the long run you wont really be thinking of the few hundred lost here or there, you're building equity and can refi into a conventional product soon enough!

I'm open to using a conventional loan during the refinance stage. 

@Armani Diaz is this a conventional loan or non conforming?

Then, you could either use that money to fix up the property, or use the leftover money to purchase another property with a conventional loan @ 20-25% down.

Details:Goal is to Owner Occupy Location: Type A *very close to great schools, downtown walkable locationHouse: 4 Plex 8 beds and 4 bathsSq Ft: 3,548Price: $425,000Mortgage: 20% down 30 year conventional Current Rents: 790, 985, 945, 910 per-month  *These seem low for this area and for the condition of the unitsOccupancy: 1 will be open for new owner to occupyInsurance: $180 per-monthProperty Tax: $415 per-monthAnnual Maintenance: $800Water, sewer, garbage, electric: all paid for by current tenants Cap Ex: $280 per-monthVacancy: $280 per-monthProperty Mgmt: $345 per-monthThe property has had many Cap X improvements over the past 6 years including, new roof, windows, refinished hard wood floors, paint, foundation work, plumbing, electric... 

In order to have extra cash to help me pay off my student loans, I just wanted to explore the idea of using a hard money loan in order to finance my first deal and then later refinance it into a conventional loan.