I have since taken the confidence that I learned from arbitrage and buying up properties now that I'm comfortable with the concept. 

He has a single family portfolio and they hold the mortgages on those so they are very comfortable.

Always think of why you started, remember that great things never came from comfort zone. 

Save up.Perhaps, if you feel the urge and are comfortable with higher risk, you can use the money you have now to advertise, sending yellow letters to distressed property owners in the hopes of picking up a place below market value using hard money and rehabbing it to refinance cash back out, but it's not always the best idea to start with a complex purchase with tons of moving parts before you've jumped in the game the traditional way.Best of luck, whatever you choose to do!

Once rented the cash flow would more than make up for the difference in my personal mortgage and if for whatever reason it didn't, our current income could handle it comfortably.

There is a small group that gets together in Annapolis run by Joe Child. https://www.meetup.com/RealEst...

You have many options, you just got to continue to think of what you are comfortable with and what exit strategy you might have.

I either have to find another lender that would be comfortable with the deal or I would need to get one of my investors to guarantee the loan.

It will help you get more comfortable with what is a deal and what is not. 

I will keep reading and gaining knowledge from others as well as the areas I want to invest in until I feel comfortable to make a move.