the note is converted or exchanged for credits?  

Bank Credit Line How did you add value to the deal?

Once you start processing the credit/criminal, the money is spent, and you can't get it back.

Contractors, unless you have a working relationship with them, normally do not want you bouncing ideas off them.Understand what their hourly rate is, have a discussion with them that you are okay with paying them an hourly rate if they walk the property with you and provide you a scope of work along with an explanation of what you can/can't get away with in regards to improvements.ask them if you go with them, if they can credit you the amount that you paid.Once you develop a working relationship with a few contractors, you can bounce ideas off them and expect quality responses.I do not invest in New York.Best of luck. 

Renting it out while strategically leveraging the equity could be the best path forward.As @Jaycee Greene said, DSCR looks at your credit rather than DTI.

If I didn't have to use credit for a portion of the course cost ($7k) and marketing costs ($1k/mo), I would do the course. 

The only other option I see is a short sale, if you don't need to purchase for a few years and don't mind a temporary credit hit to save the $60k.  

We can start with the following facts --- I have $50k to invest, I have more cash on the side to use "temporarily" (ie. rehab and pull back out through refi), I run a biz with a healthy income, and I can get credit. 

You get to take depreciation on an appreciating asset, you can even get tax credits for various projects and actions which depending the level your at equals a pay-day. 

Many community banks will give you credit for proforma rents.