The companies that provide the equipment and split the income are called Route Operators.

I would recommend doing a "reduced" (~60%-70%) leverage refinance which would help drive your rate down as much as possible and hopefully still maintain the cash flow that you would like to have, especially since they are free and clear.If you were to go the portfolio route, I would confirm with the lender you use what their 'occupancy requirement' is.

If I was a cash or financed buyer I could pickup deals at lower offers I suspect but I refuse to go that route. 

I would consider just going the commercial route.

We are over planners and want to know what type of restraints we have put on our exit routes.

I gathered all my notes in a 50+ pages document touching on the formation and maintenance of LLC and business structures, transferring assets, protection strategies, trusts, anonymity, insurance, levels of protection, etc. including when you should do it, how many properties per LLC, due on sale clause, selecting an attorney, fees, checklists and resource materials.Doc: https://www.biggerpockets.com/files/user/CosIorg/file/tritoriam-fileAsset Protection Decision Diagram - to help assess the need for asset protection, and what to implement : https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-decision-diagramAsset Protection Onion Diagram - what, when and at what cost one should implement in terms of asset protection - https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-onion-diagram-v2What is needed for complete asset protection OR the domains that need to be intersected to find asset protection - https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-spectrum-diagram (this is more of a joke depicting the nebulosity of asspro rabbit holes).How a fully implemented asset protection layout might look. - https://www.biggerpockets.com/files/user/CosIorg/file/asset-protection-structures (overwhelming and overkill for a newbie in REI)PS.

We have found local lenders with good terms, through the broker, and other ones as well.FHA/Conventional: If we go the FHA route, how do we structure the property as a business after the one-year occupancy requirement?

That language is definitely not in the rider itself, so if you decide to go that route, I'd ask for it in writing.Our decision to go with the BOP was driven by the fact that they write commercial STR under a hotel / motel policy. 

You've gotta work with someone who understand the investor route, a broker, who knows who can actually get the loan done is your best bet!

You will get better rate and terms compared to the hard money route.