Your local credit union or bank should be able to help you with that 

My concern is that if i apply for a HELOC to use for the down payment before i apply for a mortgage, A) I wont get approved due to my DTI ratio, and B) I wont get approved without first showing the bank I have the 20% down payment before pulling the HELOC.

@Brandon Weis just an overly conservative bank. 3.5% down with FHA on up to 4 units.

No biggie my bank sent me the fraud alert and I had them block the charge.

One of the reasons why I’m bullish on real estate investing is because I am more afraid of the “what if I didn’t invest” rather than the “what if it goes wrong.”Yes, I could fail and lose everything I started with, but I’d still be farther along than if I never started at all.I’d have the knowledge, skills, and lessons that only come from taking action.Every misstep is a step forward when you’re learning and adapting.The real risk isn’t failure, it’s standing still and letting fear hold you back.Take action!!!

Payment to the bank is $4,311 (includes escrow/insurance), total monthly rent $5,600, which leaves me roughly $1,300 monthly after expenses.

Some are because there are serious issues with the property that can't get financed by a bank.

The "fine print" here is fairly sizeable upfront fees and high interest rates, relative to a traditional construction loan from a bank.  

Do not sign up for courses that cost you a lot of money.Go to talk to your bank to find out how much you are qualified to borrow and start running the numbers on what a rental in that price range would look like. 

Some banks and credit unions are more flexible, especially if you have a strong financial profile.