Option #2 is we could get a HELOC on our primary home of $52K which we could use for the down payment of a second rental.

However, the primary intent was to house hack, live nicely ITL and secure something close to the areas I enjoy, especially in this low interest rate environment and stock market highs (memorial park, Washington ave, heights, Walking distance to upcoming MKT development).

If this is not your primary residence then for a duplex, at least in my neck of the woods and in Michigan where we buy too, it is 25% down.

These are for my primary residence and my mothers home.

You can only STR your primary residence.

He runs a sizable house flipping company with his own and investor capital and that operation is his primary focus/business model.  

_________________________________________________________________________________________________As recent as last year, only 15% of Americans were investing in property outside their primary residence, according to a RealtyShares survey.

If you are taking on HELOC on your primary residence you should have more options. 

I've already started talking to people in Arizona and Florida as primary locations. 

Our primary objectives are to familiarize ourselves with the area (it's our first time) & make some local contacts (particularly property management companies and brokers).