@Michael M.I am actually in the process of doing this with my current bank.

In the past, our tile selection process typically ends with us saying, "how cheap can we possibly go without it looking awful?"

This process of reconciliation can be weighted anyway the appraiser subjectively determines is most accurate. 50/50 20/30/50 80/20 whatever...Hope this helps.

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?

The process is, for example: 1) Monday: Escrow Agent records the A-B conveyance of title with the county. 2) Tuesday: The A-B is considered "closed". 3) Wednesday: Escrow Agent records the B-C conveyance.

What's the process like? 

It's not "free" to sell a home, it's not just the realtor fees but getting a home "sale ready" is often different than "rent ready" and that doesn't even include potential for vacancy expenses and holding costs during the sales process.  

I was just trying to get input on the numbers as I understand the development process.

All the tenants are currently on month to month leases and the rent is below fair market and the screening process they went through is very shady and 2 out of 3 tenants do not pay on time.

I could certainly assist you in the process.