rental property vs. VRBO/AirBnB and second home status for mortgage

[Joe Kim]

BP I need your help!

I have a property in Orange, CA that used to be primary residence from 2005 to 2009.   I bought it near the peak of the market and was under water in 2009 when we needed to move for a new job.  

Then I became an accidental landlord in 2009 and rented the property out at negative cash flow about -$300.   Now with rents up and mortgage rate (Variable at 2.875%!), I'm almost at break even cash flow (-$100/month).   

My worry is that if I refinance this property as a rental property then my rate will jump to 5%!    The variable rate at 2.875 is not going to last and so I need to figure out what to do with this property

My question is this:  Can I convert this property into a second home/vacation home?   My family does visit southern california at least 2-3 times a year.    Refinance it like primary home and lock a fantastic rate at 30 years.

Then for the remainder of the year rent it as VRBO/Airbnb

Here are the numbers:

Current value $520K

Mortgage $350K

variable rate 2.875%,  $1900/month mortgage payment currently

Rent $2300/month

HOA: $215/month

Taxes: $200/month

3bed/3bath townhome in Orange, CA  

Disneyland is 20 minutes drive away.