My son has been in the Navy for 2.5 years and is contemplating purchasing his first home which will be a 2 unit.He is looking for find out what options he has as far as mortgages that require smaller down payments. 

Navy Federal does them for HELOC's up to $100k at 70% of available Equity, Here is the link: Navy Federal HELOC for Investment properties  They do regular P&I and Interest only HELOC's

Navy SEALs Lead and Win

Navy stationed in San Diego California.

Right now, I would be doing it right after my current job which is the U.S Navy.

I'm getting a sense that this is how it really works, depending on whether or not folks at the local housing authority are hard-@sses (please excuse my french).

Make sure you include all costs - sheriffs, movers, storage, etc.Normally I'd want to know a lot more about the basement flooding, but since you've said it's a demo, I'd let it go and address it with drainage and/or french drains when you rebuild.Good luck!

Pretty decent apartments in the french quarter start around $200k. 

PenFed, Navy Federal, US Bank, and Wells Fargo all do HELOCs on investment properties.

@Matthew Hime, my agent @Melanie McDaniel is very well networked with investors and every trade partner that investors work with in the area and is one of the most tenacious people I've ever worked with - she puts most all of us Navy folk to shame.