I feel extremely uneasy and really need help.

We have the funds to be able to become current on the loan but are holding the capital for security during these uneasy times. 

If you guys were uneasy on price when offering you should have accounted for that before hand.

If you are uneasy I strongly encourage you to use a buyer's agent because using the listing agent can be used against you if you are not sure what to look for and need guidance throughout the process.

It’s also reassured me in the choice of the tenants giving my mind “security”’ while also helping them “move-in” like the name of the fee is titled instead of just being an empty name thats just 75% worse than the old way of doing things; which has oddly brought me more personal ‘security’ than the old way ever did (I should note that I’m only 3 months into this trial approach)Even tho it’s twice as much as I have usually charged, the increased time & expense ends up balancing out in the end on the balance sheet but it’s made both myself and the tenants more comfortable during very uneasy times.

Unfortunately, it was not until after we signed the lease and collected the deposit that I started feeling uneasy as if something was just not right. 

He is probably going to be straight up going forward.If you are still uneasy then pay him out now to ease your mind and start fresh.

Regarding options, I agree with Carlos that you should try to connect with mom and pop investors via facebook market place or craiglist, see the place, explain your situation in person and "pull their heartstrings" and offer to pay double security to comfort any uneasiness.

If your uneasy about, explain this to the realtor or just walk away now. 

Never having done seller financing, I'm a bit uneasy.