The reason for the 20% down is because I'm financing through a government program called NFC.

But if you're living in the house, according to whatever mortgage regulations govern your loan, fixing it up, and then moving on and taking a profit, I fail to see how this is manipulation.

A tenants life is not governed by a lease. 

@Mike Malfitani if you are referring to a conforming, conventional loan or a government loan then you do not need to season HELOC funds. 

Courts do not want to evict knowing the tenant will then fall on the government welfare system for support.

The terms can be much more flexible than if you're dealing with a bank (especially one backed by the government) for things like an FHA or 203k loan.

Do the governing documents permit the association to waive funding of reserves?

The government has subsidized these food premiums for years, but every year one hears rumors of the subsidy being lifted. this is the REAL scare of purchasing any property that is not on stilts.  

Your insurance number looks a little low, especially if it includes flood insurance.Do you have any local government inspection costs?

We have great restaurants, a night life Downtown, and the economy is thriving with a local government embracing the growth.