Here’s some guidance to help with your next steps:Hard Money Loan: Hard money lenders can often cover both the purchase price and some rehab costs (up to 70-75% of the after-repair value or ARV).

Loan interest is deductible based on the use of the loan, not the asset securing the loan. 

You can purchase this with a low-money-down FHA loan. 

Experience depends on who you deal with - the cleaner the loan file and more organized your paperwork the smoother the process with any private lender.

Its a tiny loan for any institution.You'll have to get hard bids from a local GC, but maybe $110/ft?

Pay Down the Loan Faster:I’m considering applying $40,000 annually to the loan principal.

Hard Money Loan and HELOC on my own house.

Love to keep relator out of it, but may need realtor to find a next deal for me as a duplex up to 4 plex on VA loan/owner occupy.

I am looking at different loan options but to break even (not having to put any money of my own in the house after the initial down payment) the current down payment required is that much. 

If you're confident you can find better cash-flowing deals or scale your portfolio with leverage, it could make more sense to reinvest rather than pay off the loan.