My Relationship with this tenant isn't good either.   

FHA (FHA implies Owner occupied) will finance at up to 96.5% LTV, but there is an inverse relationship between LTV and cash flow (higher LTV = lower cash flow, lower LTV equals higher cash flow).With $150K and reserving $15K for closing and reserves would give $135K.

Also most folk simply don't understand buyer agency, so detailing it in a written agreement and explaining the document to the client helps them understand the relationship as well. 

Also good school districts have some sort of direct relationship with how safe an area is.

And if you get a lower appraisal than you and your agent figured it would be worth don't be afraid to challenge it.The way they pull appraisers to come out is not the old way, the banks have no relationship with that person and that person might have no clue about the area you are in.

But the terms are not great, looking for some contacts for some local banks in Destin that I could start building a relationship with.

If keeping the rental will cause you a financial strain and being that you are in a boyfriend/girlfriend relationship I would sell.

Looking for financing options and would prefer someone local to my area to build a relationship with.

my biggest concern with the relationship going forward is i want both of us to be legally protected from hurting each other. so how can i do that?

However, it took work to build that relationship and create a mutual set of expectations before it became passive.Everyone needs mailbox money.