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Ace your first semester course. No excuses. If you can't do this, getting to a better school is highly unlikely.
Have a solid research agenda or else transferring really won't happen. Perhaps talk with some profs over the summer concerning the frontier of their fields and determine if that field suits you. Then frame your research application.
Discuss with professors openly about halfway through the semester concerning your desires
Don't be a jerk about it.
Recognize that it might not happen.
Apply at the end of the first semester.
You may want to ask yourself why you want to switch to a better ranked program. What about the current program you are in cannot meet your needs or research agenda? Or, can your research agenda fit well with the program you are currently attending? Rank doesn't matter as much as tier on the job market.
No one will fault you for wanting to do the best you can. Everyone will fault you if you snub them. Be judicious and entrepreneurial.
Servere est vivere. Vivere est vincere.