I told her that I need proof of liquid funds sufficient to cover 25% of the purchase price and to provide proof of that.  

@Lau Cor so for areas with larger populations Pueblo would be lower cost as would Grand Junction then you drop down in population to areas like Alamosa, Lamar, Gunnison, Montrose, Rifle, Meeker and the four corners.

Option 2: Take a larger portion out of Fund 2 about 30k to buy a duplex that's with in driving distance from the hospital.

By this I mean much larger home do not rent for significantly more than the smaller home in that area. 

For example, I invest in Indianapolis and there's not many 3+ bedrooms with 2+ bathroom MTRs so if I was looking to cohost I would go after a larger property to target the undersupplied market. 

They are going to finance you based on your loan to value, experience, and liquidity. 

Also, how would I analyze the numbers for this deal, because there are various ways it could be used, either separate or possibly all together for a larger group.

If it is a larger bank/mortgage broker, you should be fine. 

It will save you a ton of money upfront and you'll gain the experience to upgrade to larger deals.  

Most of our newer investors approach 2-3 lenders to discuss loan options.Some lenders recommend making your financing inquiries within a 45-day time period to avoid larger drops in your credit scores.All the best!