Do I wait another year to save more, or do I look into a HELOC or a VA cash-out refinance? 

Could help you save some serious $$ if buying and selling there and can also get you access to their MLS systems.

I'm doing this exact thing right now- I've been pleasantly surprised by how many people in my network have resources, cash and interest in something like this. 

Consider using DSCR loans- Cash flow of the property is considered in lieu of your income3.Consider purchasing in a different asset class (Large multifamily) where borrowing will be a function o fthe property income, not yours

If your rent ends up being comparable to your current mortgage, it might not give you the cash flow flexibility you’re hoping for.

Eliminate debt, establish a budget, and save.

He has been saving his money for years and has plenty of money saved but no experience with real estate investing.

Retaining your current home at a 2.875% mortgage rate maximizes cash flow, while accessing $65K in equity provides liquidity for your next steps.

Personally, I think I would stack some cash for a year or so while I did this. 

Purchase price: $550,000 Cash invested: $450,000 6 unit multi-family BRRRR.