@Max Nathanyou won't be able to get a loan "for the down payment" specifically, so you'd need cash from some other source, like a HELOC or a personal loan. 

I would find other ways to pay off the HELOC - even if you have no cash flow temporarily.

I did exactly what you are describing and I've used a HELOC on my personal home to do about 10 BRRRs, so it has worked well for me. 

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.

- Lastly I would also consider recommendations for a company who offers HELOCS (NOT cash out refi) for rental properties.

I would also only do this if both properties have solid appreciation potential.If it was me, I’d consider trying to get a HELOC on the first property and use the funds for a flip or a BRRRR so I could pay back the line of credit within 6 months and then go do it again.

Do you have any equity in you existing home (if you own it) so you can leverage a HELOC to use as an emergency fund?

So my question is: should I wait until my lease is over and then buy a multi family that I can house hack or should I buy a smaller investment property in another town now and then get a heloc when my lease is over for a house I can live in?

- Lastly I would also consider recommendations for a company who offers HELOCS (NOT cash out refi) for rental properties.

@Tom Stevenson why not HELOC as small as possible loan on your rental to buy your next rental?