Traditional financing is not an option, one reason is need to wait 7 years out of discharge, and my husband recently left the rat race and started his renovation business. 

Christian

Generally a HELOC can get you a down payment for the property, but generally not a whole property, it would probably make more sense to get the financing for any rental traditionally as it will probably have more favorable terms. 

On a related note, I was planning on traditional lending with a 20% down payment.

Not as good of terms as traditional mortgages, but still leverage ability.

I am unable to use a traditional cash out refinance due to unquantifiable DTI ratios.

If you and the property qualify, a traditional mortgage is likely to be the cheapest money you'll find. 

I would imagine it would cost a a few points up front, and carry an interest rate higher than a traditional mortgage. 

I don’t see traditional real estate investing as a pyramid scheme.

Which I would repay with a Home Equity Line within a month after purchase, or with a traditional mortgage within 6 months...