The zoning seems to suggest that I can only put a duplex in the this lot since it is less than 6000 sq ft.

If you decide to live on more of your pay later, you can take my suggestion and work your way back up to 50% without any pain.  :-)  

I suggest not to mess up your own credit and get evicted or unable to lease later.

(2) I am no aware of a conventional lender who would underwrite an LLC.My suggestion would be to put the existing property into your personal name before the sale, buy the replacement properties under same name, and then consider changing the title to your LLC at a later date - you risk triggering the "due on sale" clause, though.

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.