Compounding on one another sure that will have a big impact on the market but there are a lot of factors at play.

It is not uncommon - main reason we see right now is over inflated original ARVs and now borrowers cannot sell and pay off the lender. 

The main hassle of conventional lending is being able to provide proof of income and seasoning.

When under contract at 300k with the expectation that codes would be the determining factor on what can be done on with the property, as it relates to new construction.

Even the main city of Malaga, who was considered a backwater city just 10 years ago has become very popular and is now turning itself in a little Silicon Valley and banking center.

Usually OH and IN are the two main states they I have seen booming business in for 204 unit REI's.

Is it better to have a job or business that is doing well, then funnel the money into larger projects, if my desire is to be one of the main GP for like 33-100 unit multifamily projects?

When under contract at 300k with the expectation that codes would be the determining factor on what can be done on with the property, as it relates to new construction.

What you seem to be missing is your main need is an accounting system.  

I'd estimate your cash flow after you pay the loan payment would be $600-$800, which a lender that understands investment real estate should give you some credit for on your DTI.As for a bank, I have a specific lender at NBI that I would recommend.That 600-800 you are factoring in the HELOC repayment each month too, correct?