Right now the most likely path appears to be finding a local portfolio lender to do the loans, or refinancing several properties together into a commercial loan to reduce the number of loans down below 4 and getting another conventional loan.

We are refinancing and reducing the rate from 4.25 to 3.65 and knocking out PMI.

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.

"Caviar seeks to reduce investment volatility (“beta”) while capturing higher than average rates of return (“alpha”).

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.  

In addition, you might look at this thread if you are still considering investing there as a counter perspective to what has been posted.Obviously you can make up your own mind.