@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.  

I have been part of large real estate syndications, most recently in the mobile home sector, and am now looking to expand to out of state multifamily.

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.

If it doesn't get better, good people will avoid investing in real estate and the housing will be controlled by slum lords or government.

1...Is it possible to take a tax deduction if you are receiving rent from the government for a Section 8 tenant?