However, in CA with the annual franchise tax of $800, additional LLCs are relatively expensive.

My other option would be to buy a 2 or 3 bedroom single family and rent the additional bedrooms.

The wholesaler is fairly new to the business, but is employed with a well-established firm here in Denver.

If you "jack" the rent up (even if you find a tenant willing to pay it), typically the appraiser will not give credit for additional value above and beyond what market rents would determine.

Sure people get notices but they get calls, door knockers and agents in addition to direct mail by the truck loads especially if there is equity. 

In addition to needing a pre-qual, I want to familiarize myself with a hard money lenders' requirements and processes, so I can jump when I need to, now or in the future.Does anyone have any recommendations?

We ended up backing out of the deal cause the additional cost to the deal at that time.  

Has the city been courting any major employers with any success over the past decade?

I don't believe the 5000 sqft factors in even if trying to squeeze in additional units.

As long as you are "continually employed" without gaps and you can show that it is part of your "career growth" you should be fine, in my experience.