High risk since most fail, but big rewards. 

You can get the $20k from the bank day in and day out.

So it is really looking more at bank deposits, but most mom and pop owners won't share bank statements.  

The last forecasts I have seen from major banks and the MBA are still expecting rates in the 5.9%-ish range for spring 2025 (Q2) and that does not make any sense to me given what I see.

What makes it slow in this case is that you don't really start seeing real cash flow until after year five but it's more effective than rentals in that there is little to no maintenance.Sure you can live in a home while fixing it up with the intention of selling it for a nice profit later but I think many people are already doing that and the buyers of slow flips now also have that opportunity without having to qualify with a bank.

My concern is that if i apply for a HELOC to use for the down payment before i apply for a mortgage, A) I wont get approved due to my DTI ratio, and B) I wont get approved without first showing the bank I have the 20% down payment before pulling the HELOC.

Quote from @Sonia Vanegas: You both screwed up by failing to be specific.

Some banks and credit unions are more flexible, especially if you have a strong financial profile.

The bank is going to want to know that.

Your local credit union or bank should be able to help you with that