Again, often times this requires a large down payment when you win to be held in escrow as things go to title.

The only other option would be to get a coborrower to bring the down payment or get seller financing with a lower down payment. 

I thought about doing a 1031 for something local but I wouldn't make enough for the 20% down payment.

They are more useful IMO for getting chunks of equity right off the bat thru value add and then either realizing that equity by flipping it and using for a down payment on something bigger or hold a couple years and then sell at that point to do that then. 

However, my debt to income ratio with that home loan, and student loan doesn't look that great currently and I don’t have much for a down payment.

Since you haven't started the project yet, use this time to network with lenders to see who offers the best terms....seasoning, rate, leverage and pre-payment penalty terms. 

So I put $1600 on a credit card for a down payment and then pay $500 a month until the full amount was paid off.

Really expedites the time it takes to reach FI when you can completely eliminate your housing payment and get into multis for such little down and start building equity/cash flow with each one.

With down payments, improvements, commissions, title work, holding costs etc....

The lower rate or longer term can also make the payment more affordable.