I recommend having your deals secured by a mortgage and a promissory note for your investors.

I think a bit more info is needed to fully understand but it sounds like this is your first deal, & I would first start off by finding the deals & then securing the PM company.

Quote from @Jason Taken: did you actually have a secured lien?

While I secured the initial financing for the property, I have two other partners/groupings (a total of 6 people) that are contributing to the closing. 

My inherited tenants ALL SMOKE and none had security deposits. 

But if do a BRRRR from far away that's risky too, without a really good and trustworthy team in place and lots of checks and balances (security cameras, someone local to check on your property) and the ARV and refinance aspect can be challenging.  

No one can answer questions like this because the strategy depends on the investor's level of interest, financial framework, location, and many other factors.

If you love your job, make good money from your job, have very little time, and have cash want to park into a secure real estate asset, turnkey is the way to go.If you are opposite of that and want to dive into real estate investing operations, then fixed upper and BRRR.

The security deposit should never be used for anything during the lease.

(this covers a lot of ground and serves as a nice framework)