If this is not a Live-In situation, you'll probably need 25% Down Payment as opposed to 10% as you show in your numbers. 

I am working in Panama City in construction and was wondering how you all have been doing coping with this situation?

I plan on doing an FHA streamline refinance but I suspect that I may move in the upcoming months  would you go ahead and do the refinance and then explain to my lender the situation regarding my changing of jobs or should I forgo getting the refinance and just trying to rent out the property with my current loan?

This WILL cost you money, but handled correctly it won't hurt you badly.First of all, read up on your local laws and make sure you know your rights in this situation.

There are limited situations in which RRE should be on schedule C, but generally it would be reported on Sch E.

With roughly 40% of the population in rentals, it makes for a win win situation for first time investors. 

Only you know your situation so you have to assess carefully. 

Also I can understand having debt to family can be weight on the shoulders and stressful.

I'm put in a difficult situation because I cannot renovate the space until he gives back the key and he hasn't paid rent. 

Sessions in particular is very anti MJ.I can easily see a situation where the feds crack down and civil forfeiture rules allow them to seize all the real estate involved.