Once we fix our side up and move in the property should be worth $200k-$250k (it was very undervalued at time of purchase).Why not take a larger loan initial on the purchase of the first duplex and lower your down payment, use the cash you have for the second purchase.  

I was one of the four original investor to raise capitol to get the loan for construction.

He couldn't sell the property because no bank would give a loan on it with that in the contract.2.

Current ideas are to view it as a partnership, or an interest-bearing loan from me to him.

It is for sale by owner, but my realtor told me that the owner has an existing wrap loan on it.

It depends on the loan type and lender.

After living in the primary property in Orlando I figured we could move back to New England and rent that property out which seems like a win-win as far as getting a conventional loan rather an investment loan.

The only thing is you would have to do a hard money loan, or find a private money lender that will finance you. 

Look into private finance, partnerships, FHA loans, and conventional loans.

Using private money to pay off the deed then looking into equity loans to rehab and purchase other properties.