I'm making my first purchase on a "non-owner occupied" duplex in Central Indiana and the first mortgage company that I went to get pre-approved will only allow 25% down.

Get your tenant to explore NON- FHA options like 99% ltv & 97% conforming loan options.Also, you need to know the REAL deal with this buyer's "Mortgage" report credit and ability to obtain a loan.  

One possible path to take might be for your father to provide owner financing on his house with a Subject To or Lease Option sale with a down payment that is non-refundable. 

Are you forming a non-profit?

If you're talking a coastal SoCal duplex, the answer is probably no...it will probably not be cash flow positive (assuming a mortgage on the property).In addition to looking at non-traditional types of property, there are also some lesser populated areas of SoCal. 

When I inquire with lenders I give them the following info:Property: Investment rental (non-owner occupied SFH)Credit Score: >740Loan Amount: $80-$120KRequired LTV: 80%While im on a site like Zillow looking at properties, Ill often try to to look up rates (and APRs) and after entering in the information above  I see numbers in the mid to high 4s.

Here we have homestead exemption but as an owner non-occupant we have to pay the full tax right?

It's going to be almost impossible (On Non-Residential at least) to find anyone (Outside of Hard Money) willing to take a Down Payment of less than 30% on a Non-Owner occupied.

Otherwise, non-medical HSA distributions are treated like Traditional IRA distributions in that they are taxed at the earned income rate.I'm not a tax specialist.

good to know.. right up there with FAKE lenders on these open to the public websites..