Refinance - HML to Conventional

I am working hard to improve my credit score, but currently I do not qualify for a conventional mortgage.

If I were to purchase a SF home using hard money, put in a tenant, and be able to show a positive cash flow, am I likely to be able to refinance with a conventional loan or long term loan with lower rates?

I do have a good payment history for the last 2.5 years and verifiable income… just have a bad credit score.

You dhould wait until your credit score improves. If you can’t get a conventional loan now, you may have trouble getting one to get out of the HML. What is your FICO? Perhaps you can try to do some flips, birdoggong etc… to raise some cash. until your credit gets fixed. Your FICO needs to be above 680 for any decent conventional mortgage. Good Luck.