I'm analyzing a first potential SFH deal on a conventional loan with 20-25% down.

Unless you just want someone with no construction education/knowledge, this number probably won't work.Suggest you contact a bank that does construction loans and ask how much they charge for inspections before approving a draw.10+ years ago, the charge was around $100.

We have worked with a few VA loans in the Reno, NV area.

If I use my FHA loan, after a year of living in the household, can I convert my FHA to my LLC and still reap the benefits of that 3.5% down payment? 

So, I was wondering if it would be smarter to use the time I have on this current rental lease to start looking for a small multifamily property to buy and house hack (with an FHA loan). 

The IRS doesn't care about the type of loan you have on it. 

The first step is speaking with a loan office to get a better idea of what you qualify for, and then start figuring out where you want to live and analyzing deals.

It may make sense for you to buy a 3-4 unit building that you can move into one unit and get the low down payment on for owner occupied loan.

They came in a 6.375%, no loan origination fee, etc. and said I can refinance at anytime with no prepayment penalties, seems almost too good to be true.

I would recommend starting as a Loan Processor first and then transition into it or just go 100% full time and learn the craft.