I am told there are some contractual things you can do with your leases to mitigate that, but for me, the risk is too great.

Sounds like you've mitigated your risk significantly by only being a silent partner.  

The first steps of any plan are often painful but I'm trying to mitigate what I can.My question is, what's the best way to get started?

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

Here are some of the systems we have put in place to try and mitigate some of the issues we are seeing: 1) Always recommending 1 of our attorney's to either the buyer or the seller so we can have clear communication throughout the process2) Sending out and introductory email once assigned to all parties involved (buyers, attorneys, etc) asking them to begin updating the title and abstract ASAP.

An IRA contribution can help mitigate the tax bite but not much.But I get your real issue - you are wanting to eliminate debt not increase the portfolio. 

If so, an elevation certification may mitigate how much it would cost. 

You mitigate the risk by being prepared.

For those of you who frequently use these loans, how do you mitigate the risk of needing to refinance in 5-7 years, but not having any idea what interest rates or credit availability will be like at that time? 

Here are some rules to follow to mitigate risk if buying at this point in the cycle:Buy for Cash FlowMake sure your asset is spinning off plenty of cash to the point that you can experience a year at double the average vacancy rate and still be cash flow positive.