Future mortgage rates will probably be even higher than they are currently, and may have a negative impact on any real estate investments as cost of funds increase - mostly those with ARMs or are looking into a mortgage in the future.

If both of those are solid, there are options, but the max I've seen on multi unit non owner properties is 80%, full doc, with decent rates (in the 5's on a 30 year) and 7's on an ARM with no income verification.  

If you're looking to have them out, gear up for filing the eviction, plain and simple, as you're right about the likelihood of them staying over term.That said, unless your lease says something explicitly about showing the unit while they occupy it AND (my personal opinion) you've gone over that eventuality with the tenants and they've said that would be OK, I understand them being uncomfortable with strangers walking through their home.

I like the PenFed 5/5 ARM if you can qualify for it.

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my commercial loans have been 4.6-5%, 25 or (1) 30 year amortization, and they operate some what like an arm locked in for 5,7,or even 10 years, then an adjustment in interest. 

You will be welcomed with open arms and make a lot of connections from people with REAL life experience.  

Is it possible to include a clause that makes explicit that the tenant  elects not to purchase insurance and waives their right to damages and loss?  

Your refi option is going to be a 7/1 ARM, probably at a higher rate then what you have now and you will actually have to put money into it.

@Nicholas Natale , you got some excellent advice here, but what is missing is to make it explicitly clear that they are NOT to paint the other rooms the colors they chose.The best way to go about being a landlord is to focus on your communication.