Nothing wrong with partnerships - I have used one to scale way faster than I would have on my own because he brought skills I didn’t have - but if you can do a deal on your own first to get a better understanding of the entire process it may help you identify what you need from a partner and what types of things should be in the operating agreement.As for the operating agreement, be sure you sit down with an experienced attorney who will help go over the dozens of scenarios that may come up and how you would like to handle them. 

And in fact, we are just sitting and holding onto lots until they are able to be fully permitted already as is.

If you hired a GC to do some work, and thought that you had to be there, sit n watch them the whole time or else when not watched, they wouldn't do anything....

Therefore they can sit back and accept say $5000/month on a multi whereas me buying it, now I need full rent amount which is closer to $6800/month.

I realize that's a lot of equity to be sitting there so my question is what would be best move to try to increase income now.   

I’ve been told I still have a lot of equity in #1&2 just “sitting around” and it should be put to use rather than just sit there.

There are countless short-term rentals sitting empty there. 

You'll find your ceiling where people snag your unit and are happy versus it sitting empty.  

I just want to sit back and collect cash flow checks. 

Sitting around waiting and hoping will get you no where.Also, history seems to repeat itself.