I get a judgement and execution and contact the local constable.After a month or two, if they don't pay they get summonsed to a payment hearing.If they don't show, now the constable threatens to arrest them if they don't pay.Just collected 5k judgement doing this.Good luck

Average Houses are around 600k where I am living which means if I put 20% down I’ll be looking at a payment around 4500$.

While I am not an accountant, and you should speak to yours about this, there is a loophole in the tax code called the STR Loophole which allows your STR (provided you are not using a PM) to be counted as active income/active expense so that the costs, payments, depreciation etc. goes against your active W-2 income.

The cons - very hard to cash flow off the bat, especially with a low down payment and...

Another option is to get an interest only loan, which reduces the payment amount and thus allows for more cashflow.

So a big monthly payment you're thinking?

But multiple credit cars, car payment, rent is a no go.I've had a few tenants that went thru foreclosure when the market crashed, and want to rebuild.

If they truly had your best interests at heart, they would defer the payments until you made a profit. 

Basically, my Investor would fund a specific loan not be part of a pool of funds.One thought is I would maintain my same process and loan docs that I've used with my Borrowers where my LLC would be the Primary Lender, manage the loan and receive payments from the Borrower.

This will have a significant impact on your loans, especially on lower balance loans or loans with low payments.