If the alternative is wait 5 years for a down payment on something you don’t live in, you stand to likely gain substantially by moving on this decision now and collecting rent, principal pay down, appreciation, and tax benefits in those 5 years.  

I actually believe it is useful to have your license as an investor as you can collect commissions from your own deals and search for deals as well as serve others in the same capacity.I recommend making a connection with a good property manager in your area if you intend to work with investors and to make your own investments as passive as possible using them.

I just want to sit back and just collect mailbox money without much work.

You'll find more people on regular long-term rental sites than you would on anything designed for MTR, which is not even a term people are familiar with.If you are renting longer than 30 days, you should screen, collect a security deposit, use a written lease agreement, and follow the landlord-tenant laws for long-term rentals.

Execute a 12 month lease where you can collect a security deposit and collect rent to cover the mortgage and some money towards maintenance.

5) Collect rent?

Either a) They are a “partner” to some extent or b) They will still want 20-30% down.To me, option B is a waste of time and money because I’ll still have to refinance to get my money out to do another deal.Option A would be fine if you can find someone to just put up money, collect their payments, and let you continue rolling it into future deals.

Let's explore some effective approaches for managing investment properties:With a Property Manager:Screening and Selecting Tenants: Entrust your property manager to handle tenant screening, background checks, and selection, ensuring reliable renters for your investment.Rent Collection: Property managers can ensure timely rent collection and handle any late payments or lease violations professionally.Maintenance and Repairs: Delegate routine maintenance tasks and repairs to your property manager, who can coordinate with contractors and vendors to keep your property in top condition.Tenant Relations: Property managers serve as the primary point of contact for tenants, addressing their concerns and ensuring a positive rental experience.Lease Enforcement and Evictions: Trust your property manager to enforce lease terms and handle the eviction process if necessary, following legal procedures.Financial Management: Property managers can handle financial tasks such as budgeting, accounting, and financial reporting, providing you with regular updates on property performance.Without a Property Manager:Self-Management: Take on the responsibility of managing the property yourself, handling tasks such as advertising vacancies, screening tenants, and collecting rent.Outsourcing Specific Tasks: While not hiring a full-time property manager, consider outsourcing tasks like maintenance and repairs to trusted contractors or service providers.Utilizing Technology: Leverage property management software and online platforms to streamline processes such as rent collection, lease management, and maintenance requests.Establishing Clear Policies: Set clear policies and procedures for tenants regarding rent payments, maintenance requests, and lease terms to minimize conflicts and misunderstandings.Regular Inspections: Conduct regular inspections of the property to identify maintenance issues or lease violations early on and address them promptly.Building Relationships: Maintain open communication and positive relationships with tenants to foster a sense of community and encourage better care of the property.Whether you choose to hire a property manager or manage the property yourself, effective communication, attention to detail, and a proactive approach to property management are key to maximizing returns and maintaining the value of your investment.

They are collecting interest, a little less than if properties were paid off, but feel secure about the cash and if I do need to pay off the properties, I can. 

However, since the chances of collecting on the judgement are small and your costs to travel for the hearing is large, it may not be worth doing that.