As others here have said, it fails the 1% rule and that raises a red flag for me.  

I've been set up with an agent through my bank.

If so, what happens when a due on sales clause is initiated by the bank?

Save for 7-8 months and get my 20% down of 10k on it and go to a bank which isn't my favorite option or maybe since I was reading on here that life insurance company's have a very low interest rate and like to invest in multi family buildings that would be another good option.

Conventional loans are offered by nearly every bank and sometimes they are the only loans a bank may offer....but there are other loan types.  

Either way, after that year, banks will be able to truest you since you'll be able to show you successfully managed a rental property.

The first filed for a relief of stay because the borrower failed to pay them during the BK period. 

Hi,I'm looking for banks that allows to buy an investment property through a HELOC.

I also read your profile and tried to read more on your website (http://www.prymehome.com) but it fails to load.

A HELOC will require you to call around to a lot of banks.