The leases are typically for the tenant to pay maintenance, not for them to cover capital expenditures.

We do not want to be a lender or have our name taken off the title unless they can pay the “due on sale” mortgage. 

You have to know how to find and sign properties ahead of getting access to those buyers.You do want to do both at the same time so that when you have your first deal, you know someone, but don't expect anyone to pay attention to you if you don't have 4-5 deals at all times.

If i would have financed it for 15 or 20 years the payment would smaller which would have allowed me to have enough money generated enough money to pay all expenses including taxes

If you have multiple properties, you would pay more in the long-run buying insurance ever time.

Instead of spending all day waiting in line for a few rides, pay to to 'skip the line' .

If they offered seller finance to us, those funds could then be used to pay for the lease at our home if we swap however they are retired, what about tenant screening amongst other things, not sure what type of deal structure is best for this scenario but if anyone can guide me with any feedback is greatly appreciated.

Charge what you need but be sure and pay it off before the introductory rate expires. 

You will need 20-25% down and a commercial loan for the rest.Most lenders will want to lend to an LLC with you personally guaranteeing the loan.Typically, each MFR would be purchased under its own LLC, for liability purposes.Each LLC would then also need its own bank accounts for collecting rents and paying expenses.

This means that you will probably need to pay registration and filing fees in at least 2 states if you don’t buy CA property as a CA resident.Any lawsuits should be limited to the assets of the LLC and not your personal assets (assuming you run the LLC appropriately and the corporate veil is not pierced, some debate as to SMLLC).