I’ve spoken and done applications with big banks and smaller lenders but both ruled out a cash out refi or heloc due to high DTI ratio. 

The inherited house also needs repairs done and I was thinking either refinance his current townhome if it makes sense or maybe even pull a HELOC on the townhome to use funds for repairs. 

Would it be better to refinance and pull out some cash to get started flipping homes or would it be better getting New loan as a HELOC? 

Then fix the place up and do a cash out refinance or HELOC and pull your money back out.

After I’m there a year refinance as owner occupant and have some equity to pull out as part of my down payment is a heloc on my single family home.

Now, for those without money but the drive and willingness to put yourself into debt, don't worry they are more than willing to give you time to apply for a loan, call and up your credit limit, or take out a HELOC. 

Also, take out a heloc on your primary for reserves and liquidity if you ever need it

Hello Finance Experts,Specific to Texas North DFw area I’m observing to see the rates go down.I need help to refinance my primary mortgage with heloc and cash out remaining equity for new investing.

HELOC:  You can also get a line of credit against the house. 

As J says refi, credit cards, heloc on your personal residence, hard money, loan against a paid off car, loan from your 401k fund, loan from family (I don't like to do business with family but...), sell something like a spare car, jewelry, etc, rent your current house and live in your rehab and use rental income to fund construction, personal signature loan.