If you are running around chasing deals without any confirmed capital source, you are wasting yours and many other people's time.  

I'm sure they don't want to waste time for tire kicker calls on property but I made a genuine offer and was completely shut down. 

Doing it that way not only pisses your lender off by wasting their time but it also makes your realtor look bad last minute and likely sours his relationship with the seller and/or the listing agent as well.My advice, use it as a learning experience for your next investment. 

Identify actions (if any) I should be taking on this current property between now, the inspection and closing to minimize my risk exposureThanks in advance!

Investing might be a bit much for him at the time but I think he could be (with a bit of work) a decent PM.OR would it be a waste of my time?

I would probably reach out to an attorney now and see what they suggest first since the cost of an attorney is minimal to a month of rent in SF.

Preforeclosures and lease options aren't a good fit, unless you're willing to bring the note current, which nullifies one of the advantages of a lease option, that being controlling properties with minimal cash out of pocket. 

But I don't want to waste my time going from bank to bank to see who will offer me a HELOC.

However, once I have an application submitted, I disclose that to future interested parties so they know there's competition and aren't wasting their time.If you deny them because they don't meet your qualifications, then you should send them the letter.

Where does one even begin to find the right people so you don't get screwed or waste time with those unable to actually help.