Specifically, I have $100-150k that I am able to invest and I’m seeking out options and suggestions for someone in my situation.I am an informed investor who is open to possibilities that afford long-term passive income in Real Estate, preferably in multifamily.

The realtor suggested that since we were local, we would qualify for special financing.

Ok so I have a coworker who's looking to buy a home in the same area I've decided to invest in he's getting a mortgage in his name and asked if I would be willing to put up half the down payment and split the cash flow between the two of us has anyone done this do you have any suggestions any horror stories any success stories.

Many of the remedies you suggest would be illegal in many states Those who break the lease or have the inability to pay will probably not have the money to pay your fines  Check with property managers and attorneys in your state to make sure your are complying with state laws There just was a large forum on towing a tenants car if they fail to pay rent https://www.biggerpockets.com/forums/51/topics/486...

After having conversation with my agent, she suggest not going in to FHA loan, but instead try conventional with 5% down, and getting HELOC after 6 months of occupation.

Suggest you do it out of the state if you have time and cash.

Any one suggesting keeping a tenant below market or slowly decreasing your monthly losses has zero business scenes.

Otherwise, I need to exercise what is in my right to protect my business."

In the meantime I have already contacted a local restoration company (Paul Davis, any other suggestions?)

I highly suggest you to read, "The Ultimate Beginner’s Guide to Real Estate Investing".