Hire a RMLO or Mortgage Broker to be able to look through a credit application and a mortgage applicationLook at debt to earnings ratio or DTI, look at credit, look at length of employment, look at length the residency in the area,You need to sell to the tenant buyer the neighborhood and for them to want what the house offers the family,  to be able to step into that opportunity to get out of that apartment or rental property. 

Debt for cars is bad debt.

Based on the info you provided, it sounds like you have around $100k to put down while carrying $300k in debt service per property.  

My initial plan was to purchase with cash then take a mortgage out after it is rented for 3 months then use the mortgage money and add 20% more of my cash on hand to buy the next place; I could have done that to purchase 4 houses which would have my passive income at a comfortable level.  3 of the 4 houses would have a mortgage and I would have mutual funds and 1 house to cover the debt of the 3 mortgages. 

Your cashflow is breakeven while you pay off the debt but you own it free and clear in short order.  

Usually you'll win and then get an order for a writ of possession.

In the financing aspect of the software, I show them earning 3% compounded monthly, paying interest only, monthly for 5 years.I also plan to structure a hybrid debt/equity partnership.

Before that you probably would not meet the Debt to Income Ratio requirements.

I could watch my property values drop to the point where my debt on properties was higher than my values (upside down), and because I had bought with such high cash flow (which actually grew), it didn't matter.  

In Illinois for example, you can recover attorney's fees, but you only have 1 year to file a claim from the date of closing/possession, whichever is earlier.